ED files charge sheet against Mallya in Rs 900 crore IDBI bank default case: 10 Points

Indian politician and billionaire businessman Vijay Mallya leaves after his extradition hearing at Westminster Magistrates Court in London, Tuesday, June 13, 2017. (AP Photo/Matt Dunham)

MUMBAI: The ED on Wednesday filed its first charge sheet against liquor baron Vijay Mallya, wanted in India for allegedly defaulting on bank loans totalling Rs 9,000 crore, and others in connection with its money laundering probe in the IDBI-KFA bank default case.

• The 57-page charge sheet or prosecution complaint, with voluminous annexures, was filed under various sections of the Prevention of Money Laundering Act (PMLA) before a special anti-money laundering court.
• The Enforcement Directorate had registered a criminal case in this deal last year under the PMLA and has attached assets worth over Rs 9,600 crore till now.
• Officials said the agency has stated in detail in the charge sheet how funds of about Rs 400 crore were moved abroad in alleged violation of rules.
• It has also mentioned the role of other officials and executives of KFA and IDBI in this deal and has appended their statements recorded by the agency under the PMLA law.

• The investigations conducted by the ED so far had stated that its probe found that the Kingfisher Airlines (KFA) along with IDBI bank officials "criminally conspired to obtain funds to the tune of Rs 860.92 crore despite weak financials, negative net-worth, non-compliance of corporate credit policy of new client, non-quality collateral security and low credit rating of the borrower, out of which Rs 807.82 crore of principal amount remains unpaid".
• The total loan sanctioned and disbursed by IDBI to KFA was Rs 860.92 crore.
• The ED had said its "money trail analysis revealed that out of the total loan of Rs 860.92 crore, sanctioned and disbursed by IDBI, Rs 423 crore has been remitted out of India.
• The said payments were shown to be made towards aircraft rental leasing and maintenance, servicing and spare parts."

• The 61-year-old businessman who has been living in Britain since last year and is also facing extradition proceedings in UK courts. Mallya, whose now-defunct Kingfisher Airlines allegedly owes more than Rs 9,000 crore to various banks, had left India in March 2016.
• Mallya (61), had on Tuesday claimed during his court appearance in London that he has "enough evidence" to plead his case and taunted authorities saying, "you can keep dreaming about a billion pounds".

In April, Mallya had been arrested by Scotland Yard on the allegations of fraud, triggering the extradition process in British courts. He went to a central London police station for his arrest and was released on conditional bail a few hours later after providing a bond of £650,000. He had assured the court that he would abide by all conditions associated with the extradition proceedings, such as the surrender of his passport and a ban on him possessing any travel documents.