In a major worry for beleaguered business man Vijay Mallya, the Enforcement Directorate (ED) has accused the now defunct Kingfisher Airlines of “diverting” over Rs. 3,547 crore of loan to a UK-based F1 motorsport firm, a T20 IPL team and others, according to reports. Apart from this, the ED also said in its supplementary prosecution complaint (charge-sheet) that Mallya did not fully disclose his assets during his personal guarantee agreement with a consortium of 17 lenders, according to Indian Express report. It has been stated in the charge-sheet that while ED estimated his total assets at Rs 3,164.65 crore as on 2010, Mallya disclosed his total assets as Rs 1,395 crore.
The ED has claimed that Mallya “has amassed huge properties outside India, especially in United Kingdom, USA, France and other countries” and “has got interest in various companies which are created/ incorporated outside India”. “These facts of overseas properties and companies have not been mentioned in the asset/ liability statement submitted, and have been deliberately hidden from the banks,” it has said.
According to, ED charge-sheet, total dues including interest of Kingfisher Airlines to the consortium of banks stood at Rs 9,990.07 crore as on May 15 this year. According to ED, Rs 3,432.40 crore was diverted by “over invoicing” of lease rentals of aircraft between April 2008 and March 2012. Apart from this Rs 45.42 crore was diverted “for making payment towards the rental lease” of a corporate jet which was used “exclusively” by Mallya, Rs 50.90 crore was diverted from Kingfisher Airlines to Mallya-controlled Force Indian Formula One Team, Rs 15.90 crore was diverted from the airlines to IPL team Royal Challengers Bangalore; and payment of Rs 2.80 crore to ICICI Bank as repayment of an earlier loan to Kingfisher Airlines.
Talking about the T-20 cricket Indian Premier League team, the ED chargesheet said, that the Bengaluru franchise of this sporting extravaganza (named Royal Challengers) was purchased by Mallya and “loan amount of Rs 15.90 crore was siphoned of and diverted from the bank acount of KAL held with Deutsche Bank to Royal Challengers Sports Pvt Ltd, Bengaluru.” The agency said it has attached assets valued at Rs 4,234.84 crore in this case and “by concealing these properties and non-payment of loan amount and diverting the loan proceeds out of India, Mallya and UBHL benefited from the same and hence they are involved in the offence of money laundering.”