Vijay Mallya in trouble as Mumbai court issues non-bailable warrant against him
July 05 : A special Prevention of Money Laundering Act (PMLA) court on Wednesday issued a non-bailable warrant against Vijay Mallya and other accused, including IDBI officials, in the alleged loan default case.
The ED on June 14 filed a charge sheet in the money-laundering case naming nine accused, including Mallya, former chief financial officer of Kingfisher Airlines A Raghunathan, along with former bank officials namely Agarwal, former deputy MD OV Bundellu, former ED SKV Srinivasan and former MD BK Batra.
The agency believes the Rs950-crore loan transaction between the now-defunct KFA and IDBI bank was in contravention of established industry practices.
The said corporate loan was sanctioned and disbursed despite weak financials, negative net-worth, negative debt to equity ratio, low credit rating of the borrower company, said ED officials.
It shows the connivance between Mallya and the bank officials. IDBI failed to conduct due diligence, said the official.
The charge sheet details the proceeds of crime and is seen as a move to make India’s case stronger for Mallya’s extradition.
The ED charge sheet notes the loan was sanctioned in three parts. The first short term loan was of Rs150 crore, the second of Rs200 crore and the last disbursement of Rs700 crore, of which Rs200 crore was subsumed, stated ED.
The first short-term loan was cleared in a day after a meet between Mallya and former IDBI Bank chairman Yogesh Agarwal, who is also an accused in the case.
The ED charge sheet revealed Rs417 crore was remitted outside the country under the pretext of lease rental payment and other miscellaneous payments. Moreover, ED has alleged that the brand valuation of KFA was wrong.
ED, in its charge sheet, stated some payments were made to sister concern companies such as Rs50 crore to Formula 1 and an additional Rs100 crore to other sister concern companies.