Bringing new setback for ‘King of Good Times’ Vijay Mallya, the Enforcement Directorate on Wednesday filed its first chargesheet against liquor baron and others in connection with its money laundering probe in the IDBI-KFA bank loan case.
The 57-page chargesheet 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 chargesheet 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.
After coming out of the court on Tuesday, an embattled Mallya said, “You can keep dreaming about the billion pounds, but there’s no proof.”
“Do you have the facts? You cannot prove anything without facts,” he added.
When asked how he felt when he was booed at and called a thief during a match between India and South Africa, Mallya said:” I was not called a thief that day by crowd at Oval ground. Two drunk people were shouting, but several others came and wished me well”.
Speaking to media before his extradition hearing, Mallya had said, “I deny all allegations, I have enough evidence to prove my case in court.”
Britain’s Crown Prosecution Service argued the extradition case on India’s behalf. A joint CBI-ED team went to London last month with documents to bolster the Crown’s case.
