Fresh non-bailable warrant against Mallya
MUMBAI: A designated court for Prevention of Money Laundering Act (PMLA) has issued a fresh non-bailable warrant against liquor baron Vijay Mallya in connection with the complaint filed by the Enforcement Directorate (ED) under the newly framed Fugitive Economic Offenders Act.
While accepting the complaint filed against Kingfisher Airlines, Vijay Mallya and UB Holdings earlier this week, the court on Wednesday, issued summons against the two companies directing them to appear before the court by July 30. It also issued a non-bailable warrant against Mallya as ED claims he has left the country long ago. The new complaint filed against Mallya and his two companies is to facilitate ED to confiscate his assets. ED has so far attached movable and immovable properties worth ₹4,234.84 crore belonging to Mallya. ED said it would soon move court to get Mallya declared a “fugitive” under the recently promulgated Fugitive Economic Offenders Ordinance, so it can confiscate more assets.
The case pertains to laundering of money obtained by Mallya through loan from various banks. ED alleged the loan amount was siphoned off to acquire a corporate jet that was used as a personal carrier by Mallya and make payments to his Indian Premiere League (IPL) team, Royal Challengers Bangalore. Some of the funds were diverted through false remittances using bank accounts of Kingfisher Airlines and Force India Formula One Team. In its complaint, ED said, “M/s KAL offered collateral security to obtain loans from various banks by four means – hypothecation, assignment of KAL brand which was valued approximately at ₹3,406 crore by M/s Grant Thornton, negative lien on fleet of hire purchase, finance lease aircraft, corporate guarantee of UBL and guarantee of Mallya. He and officials of KAL conspired to get accepted the value of the brand as a collateral security, despite it being a hypothetical asset.”