The new case against Mallya and Kingfisher Airlines is based on a complaint filed by a State Bank of India-led (SBI-led) consortium with the Central Bureau of Investigation (CBI).
The Enforcement Directorate (ED) on Tuesday registered a fresh case against businessman Vijay Mallya and Kingfisher Airlines Ltd. The case has been filed on the suspicion that Mallya and airlines laundered money taken as loans. The new case against Mallya is an addition to an ongoing investigation involving a loan amount of Rs.900 crore from IDBI Bank. In the new case, the agency will probe a loan default of Rs.6,900 crore.
The new case against Mallya and Kingfisher Airlines is based on a complaint filed by a State Bank of India-led (SBI-led) consortium with the Central Bureau of Investigation (CBI). Earlier this month, the CBI had filed a fresh case under IPC sections related to criminal conspiracy and cheating against Mallya on the basis of a complaint received from SBI led 17-bank consortium.
The Consortium in its complaint alleged that the Mallya and Kingfisher’s illegal conduct caused them a loss of Rs 6,027 crore. The consortium alleged that Mallya didn’t keep repayment commitments of loan taken during 2005-10.
The fresh case against Mallya will strengthen ED’s probe against the beleagured liquor baron and expedite a slew of actions it has initiated against him. Besides the cases, a global arrest warrant by Interpol has also been issued against Mallya. ED is also mulling to start the second round of assets attachments under PMLA soon. The embattled businessman, who is reportedly living in London, skipped appearance before a special PMLA court in Mumbai early this month.