Calling beleaguered beer baron Vijay Mallya the prime mover in a money laundering plot involving a loan of Rs 861 crore from IDBI Bank, the Enforcement Directorate on Wednesday filed its first charge sheet against Mallya and eight others in the case.
The 57-page charge sheet or prosecution complaint filed under various sections of the Prevention of Money Laundering Act (PMLA) before a special anti-money laundering court names Mallya, the nowdefunct Kingfisher Airlines (KFA), United Breweries (Holding) Limited and senior employees and executives of IDBI Bank.
It has also mentioned the role of other officials and executives of KFA and IDBI Bank in this deal and has explained how the alleged bank loan fraud was committed, with the help of flow charts and diagrams. ED has also described how funds obtained from the bank loan were allegedly routed illegally including substantial payments being diverted by the beleaguered businessman to the Formula-1 car racing event abroad.
The court is soon expected to take cognisance of the charge sheet, officials said. The agency's investigations found that Mallya, KFA and IDBI bank officials criminally conspired to obtain funds of Rs 860.92 crore, despite weak financials, negative networth, 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.
Of the total loan sanctioned and disbursed by IDBI, Rs 423 crore has been remitted out of India, in alleged violation of rules, ED said in the chargesheet. The said payments were shown to be made towards aircraft rental leasing and maintenance, servicing and spare parts. The agency is expected to soon file a supplementary charge sheet in this case.
The ED 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. The agency also added the statements of KFA and IDBI bank officials it recorded under the PMLA in the charge sheet.
Mallya, sought by India for defaulting on several bank loans of nearly Rs 9,000 crore, has been in the UK since March 2016 and was arrested by the Scotland Yard on an extradition warrant on April 18.