London: A team of Enforcement Directorate (ED) officials submitted a charge sheet against liquor baron Vijjay Mallya to Britain’s Crown Prosecution Service (CPS) that will argue the extradition case for India.
The charge sheet details the case against Mallya. It states Mallya laundered Rs 1301.67 crore though various shell companies in India and abroad. The agency recently filed the charge sheet before the special court for Prevention of Money Laundering Act (PMLA). The agency suspects that Mallya has around 13 such shell companies in the United States, Ireland, Mauritius and France.
ED sources stated the two officials include a joint director and a legal advisor that will submit the charge sheet to CPS. Sources said the ED along with officials of the Central Bureau of Investigation (CBI) will brief the CPS about money laundering through shell companies and the details of probe into the property and accounts held by Mallya outside India.
The agency alleged the loan transaction between the now defunct Kingfisher Airlines (KFA) and IDBI bank was in contravention of established industry practices. The said corporate loan was sanctioned and disbursed despite weak financials, negative net-worth, negative debt-to-equity ratio and low credit rating of the borrower company.
“The CPS will be apprised about the documents and the fresh evidences,” said an officer requesting anonymity. The agency claimed Mallya had parked around half of the loan amount obtained from IDBI bank outside India in shell companies he set up.
“Of the 900 crore, Rs417.29 crores have been remitted out of India for payments shown to be made towards aircraft rental lease, maintenance, services and several such purposes. However, no documents were submitted to support such transaction. Thus, it appears to be laundering,” the complaint claimed.
Moreover, ED alleged the brand valuation of KFA was wrong. KFA’s brand valuation was supposed to be used for their internal review, but was presented to IDBI bank, alleged the charge sheet.
Last month, the Westminster Magistrates Court extended Mallya’s bail till December 4.The fresh set of evidences has been submitted to the CPS to ensure that the extradition case becomes stronger.