ED registers money laundering case against Vijay Mallya

In fresh trouble for liquor baron Vijay Mallya, the Enforcement Directorate has registered a money laundering case against him and others in connection with the alleged default of over Rs 900 crore loan from IDBI bank.

By: PTI | Mumbai | Updated: March 7, 2016 4:13 pm
Vijay Mallya, Vijay Mallya usl, Vijay Mallya quits, Vijay Mallya kingfisher, Vijay Mallya news, business news, india news Kingfisher chairman Vijay Mallya

In fresh trouble for liquor baron Vijay Mallya, the Enforcement Directorate has registered a money laundering case against him and others in connection with the alleged default of over Rs 900 crore loan from IDBI bank.

Official sources said the agency recently filed charges under the Prevention of Money Laundering Act (PMLA) based on an FIR registered last year by CBI in the same case.

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They said while the ED’s zonal office here has registered the case, sleuths are also looking at the overall financial structure of the now defunct Kingfisher airlines and a separate probe under foreign exchange violation charges could also be initiated.

“Mallya and others will soon be questioned. The agency has collected relevant documents from concerned authorities and the bank in question,” they said.

Read Also: Vijay Mallya lashes out at banks for sparing bigger defaulters

The ED has pressed charges under various sections of the PMLA against Mallya and others named in the CBI complaint.

The CBI had booked Mallya, director of Kingfisher Airlines, the company, A Raghunathan, Chief Financial Officer of the airlines, and unknown officials of IDBI Bank in its FIR alleging that the loan was sanctioned in violation of norms regarding credit limits.

IN PICS: See Vijay Mallya’s darling Airbus A319 which is up for auction 

The CBI action came as part of its wide probe into criminal aspects of loans declared to be non-performing assets by public sector banks.

The ED is looking into the “proceeds of crime” that would have been generated using the slush funds of the alleged loan fraud, they said.

While a DRT order is expected in this case today, ex-Kingfisher airlines employees have also gone public against Mallya and the company alleging they have been cheated of their remuneration and service benefits.

Mallya had yesterday said he is making efforts to reach a ‘one-time settlement’ with banks through additional payments to the lenders, even as he denied “personally” being a “borrower or judgement defaulter” and alleged that “disinformation campaign” was being played to make him a “poster boy” of all bad loans.

The debt-laden airlines had stopped operations in October 2012.

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  1. R
    Apr 9, 2016 at 7:10 am
    Even after issuing three notices by E D for his appearance in relation to MLC.Vijay Malya has not appeared and on the last date had asked for time till May to appear .As per his request ,time may be granted to him to appear before 31st May 2016 case he does not appear as per time given to him ,as per his own request ,the things will be clear and then next appropriate steps can be taken by ED.lt;br/gt;The Honable Supreme Court has also directed him to file his affidavit giving details about his ets ,investments etc in India and abroad .Being a Rajya Sabha MP ,he must have filed affidavit declaring his ets etc and thus he may only give detals as has been given at the time of seeking Rajya Sabha Nomination..The reason being that most of his ets / investments in India and abroad may not be in his name and thus it is very difficult to ascertain the same fact ,there is a possibility that ,since his declaration of ets at the time of filing nomination for Rajya Sabha seat ,5 years back, his ets and holdings may come have down because of developments in last 5 years. Whether here in India or abroad ,he should be asked to give detailed break ,as to how he wants to clear his liabilities and how much time he needs to take for doing the same .To show his bonafides he can be asked to make some upfront payment ,while giving the detailed plan of period and amount of payment periodicaly.There is no harm in asking him ,whether he is expecting waiver of some amounts while settling the dues and depending on his response ,the lendrs can make him clear ,whether they are willing to waive some amounts.It is only if both sides are clear about expectations from each side ,then only some solution can be arrived at betwen the parties .Otherwise the lenders will have to proceed against him in various forums ,where they have filed cases against him for recovery of amounts from him ,which is again a time consuming process as even if decrees are pased against his company / him,whosoever is the borrower for certain amounts ,they are appealable in Higher Courts and there should be availability of ets / securities to execute the said decrees.Therefore banks should also do their home work and see how the amounts being claimed by them are secured and what is the liklihoid of re overing the amounts throgh proper legal process as compared to one time settlement .
  2. R
    rajan Karunakaran
    Mar 7, 2016 at 12:37 pm
    Cheating public sector banks is serious crime and needed serous punishment without considering his status .
    1. A
      Mar 7, 2016 at 10:16 am
      Iranian business man Zanjani is sentenced to death for corruption, this is nationalism and patriotism, a lot to learn for RSS and its communal thugs, and the joke is, if death penalty is introduced nearly 30% hindus will be executed, and the legislatures will be vacant halls and the armed forces will be without our patriotic officers and generals