Vijay Mallya laundered Rs 500 crore of Rs 900 crore IDBI loan, says ED
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Updated: Oct 05, 2017, 11.25 AM IST
NEW DELHI: In its affidavit filed in the UK court through the Crown Prosecution Service, on the basis of which Vijay Mallya was arrested on Tuesday in London, the Enforcement Directorate has claimed that former liquor baron laundered around Rs 500 crore of the Rs 900 crore loan taken from IDBI bank.
The agency's affidavit provides complete 'money trail' on how Mallya diverted the loan money to at least seven countries, including the US, the UK, France, Switzerland and Ireland.
The affidavit said that Vijay Mallya used several shell companies and some of his legitimate companies other than Kingfisher Airlines to divert the money, by generating fake invoices or over invoicing of products, according to sources.
Mallya had made dummy directors in the shell companies, but control over business related fund transfers were retained by him, said sources detailing the modus operandi as shared with the UK court.
The ED investigators says that UK court has accepted their affidavit, on the basis of which Mallya was arrested on Tuesday, which is a major success for them. "Now, our extradition case will be heard along with CBI's extradition proceedings in the Westminster court in December," said an ED officer.
"Basically, the prosecutors in London now have everything they need to prove 'dual criminality' on Mallya's part. The documentary evidence submitted in the UK court establishes that he laundered money both in India and the UK," added the officer.
As first reported by TOI, ED and CBI, with the help of other agencies like Financial Intelligence Unit (FIU), income tax department and information provided by other countries, will soon share evidence on how Mallya 'systematically' laundered most of the Rs 6,027 crore loan taken from a consortium of 17 banks led by State Bank of India. Both CBI and ED are preparing to file their chargesheets in SBI case soon, which will establish the 'larger conspiracy'.
Britain's Serious Fraud Office has also recently started a "money laundering" investigation against Mallya, as first reported by TOI.
Mallya's properties worth around Rs 9,800 crore have already been attached by agencies in India. In an email response to TOI recently, Mallya had claimed that charges against him were "wild, baseless and fabricated".
The agency's affidavit provides complete 'money trail' on how Mallya diverted the loan money to at least seven countries, including the US, the UK, France, Switzerland and Ireland.
The affidavit said that Vijay Mallya used several shell companies and some of his legitimate companies other than Kingfisher Airlines to divert the money, by generating fake invoices or over invoicing of products, according to sources.
Mallya had made dummy directors in the shell companies, but control over business related fund transfers were retained by him, said sources detailing the modus operandi as shared with the UK court.
The ED investigators says that UK court has accepted their affidavit, on the basis of which Mallya was arrested on Tuesday, which is a major success for them. "Now, our extradition case will be heard along with CBI's extradition proceedings in the Westminster court in December," said an ED officer.
"Basically, the prosecutors in London now have everything they need to prove 'dual criminality' on Mallya's part. The documentary evidence submitted in the UK court establishes that he laundered money both in India and the UK," added the officer.
As first reported by TOI, ED and CBI, with the help of other agencies like Financial Intelligence Unit (FIU), income tax department and information provided by other countries, will soon share evidence on how Mallya 'systematically' laundered most of the Rs 6,027 crore loan taken from a consortium of 17 banks led by State Bank of India. Both CBI and ED are preparing to file their chargesheets in SBI case soon, which will establish the 'larger conspiracy'.
Britain's Serious Fraud Office has also recently started a "money laundering" investigation against Mallya, as first reported by TOI.
Mallya's properties worth around Rs 9,800 crore have already been attached by agencies in India. In an email response to TOI recently, Mallya had claimed that charges against him were "wild, baseless and fabricated".
(This article was originally published in The Times of India)
