ED files first charge sheet against Mallya under PMLA

NEW DELHI: The ED on Wednesday filed its first charge sheet against liquor baron Vijay Mallya and others in connection with its money laundering probe in the IDBI-KFA bank loan case. The charge sheet was filed under various sections of the Prevention of Money Laundering Act before a special court.

The ED on Wednesday filed its first charge sheet against liquor baron Vijay Mallya and others in connection with its money laundering probe in the IDBI-KFA bank loan case.

The 57-page charge sheet 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 here.

The ED had registered a criminal case in this deal last year under the PMLA and has attached assets worth over ₹ 9,600 crore till now.

Officials said the agency has stated in detail in the charge sheet how funds of about ₹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 ₹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 ₹807.82 crore of principal amount remains unpaid”.

The total loan sanctioned and disbursed by IDBI to KFA was ₹860.92 crore.

Meanwhile, Mallya took to Twitter to hit out at the media on Wednesday, a day after he appeared in a UK court that is hearing his extradition case.