The Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) are reportedly planning to charge sheet the fugitive businessman Vijay Mallya for allegedly transferring a big chunk of Rs 6,027-crore loan he took for his now-defunct Kingfisher Airlines to shell companies in seven countries.
The money was allegedly diverted to shell companies in seven countries, including the US, UK, France and Ireland, Times of India reported. The evidence is likely to build up a stronger case for Mallya's extradition from the United Kingdom.
Even as the investigating agencies did not disclose the exact amount laundered to offshore shell companies by Vijay Mallya, an official described it as huge, the report said.
"We received information that Mallya, using his company and associates, laundered a major chunk of this Rs 6,027 crore loan to several countries. Now, we have established links with shell companies and bank accounts in at least seven countries. Letters rogatory have already been sent to the US, the UK, France and Ireland and we will get complete details soon," the report quoted a government official, as saying.
"Vijay Mallya would repay some part of the loan, which allowed him to gain confidence of the banks, which gave him further loans. In all, he took Rs 6,027 crore in loans from a consortium of 17 banks," the official added.
As the final hearing on Vijay Mallya's extradition is expected in December, the CBI and ED are preparing to share the fresh charge sheet with the UK prosecutors.
While State Bank of India (SBI) had a maximum exposure of Rs 1,600 crore, other public-sector banks that gave loans to Kingfisher are Punjab National Bank with an exposure of Rs 800 crore, Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), Central Bank of India (Rs 410 crore), UCO Bank (Rs 320 crore), Corporation Bank (Rs 310 crore), State Bank of Mysore (Rs 150 crore), Indian Overseas Bank (Rs 140 crore).
As of now, Mallya is charged only in the Rs 900 crore IDBI loan case. Of the total Rs 900 crore loan sanctioned and disbursed by IDBI, Rs 423 crore was remitted out of India, in alleged violation of rules. The said payments were shown to be made towards aircraft rental leasing and maintenance, servicing and spare parts.
Mallya, KFA and IDBI bank officials had 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.