The CBI and Enforcement Directorate are preparing to chargesheet against controversial tycoon Vijay Mallya for allegedly diverting a large portion of funds from the £602.7 million loan he took for his now-defunct Kingfisher Airlines. Sources said the money was diverted to shell companies in seven countries, including the US, UK, France and Ireland.
People in the know claimed the evidence would strengthen their case for Mallya's extradition from the UK. An official who refused to reveal the exact amount, said “it's huge”. “We received information that Mallya, using his company and associates, laundered a major chunk of this £602.7 million 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.”
Sources, however, maintained that he went through a “systematic” way to commit the fraud. The official said, “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 £602.7 million in loans from a consortium of 17 banks.” The fresh chargesheets with details of “systematic money laundering” through shell companies in various countries should help boost the case against Mallya.
The Indian government has filed a plea for the businessman's extradition from the UK, where he has been living since he fled on March 2, last year. The case is being heard on the basis of a £90 million IDBI Bank loan fraud money laundering case in the court of senior district judge (chief magistrate) Emma Arbuthnotat in London.
