Thursday, July 9, 2020
Home News Reports ED files first chargesheet against Vijay Mallya – know what he is charged with

ED files first chargesheet against Vijay Mallya – know what he is charged with

Also Read

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

The Enforcement Directorate (ED) has filed its first chargesheet against liquor baron Vijay Mallya, his now-grounded Kingfisher Airlines and his United Breweries (Holding) Limited in connection to the Rs 900 crore IDBI-KFA loan default case. Senior executives of the Kingfisher Airlines and the IDBI (Industrial Development Bank of India) Bank have also been named in the chargesheet.

The chargesheet, which runs into 5000 pages, was filed before a special anti-money laundering court in Mumbai on Wednesday (14 June). The chargesheet was filed under various sections of the Prevention of Money Laundering Act (PMLA).

Calling Mallya the “prime mover of the entire plot”, the ED chargesheet – with the help of flow charts and diagrams – explains how the bank loan fraud was done. The chargesheet describes how funds of over Rs 400 crore were moved abroad in alleged violation of rules. The chargesheet further describes how a significant portion of the funds obtained from the bank loan were diverted illegally to fund the entities of the beleaguered businessman in India and abroad.

The ED chargesheet talks about diversion of funds to Mallya-owned entities such as Watson and Force India and software consulting firm UBICS. The chargesheet further suggests that funds were diverted Mallya’s Formula-1 car racing event and the two firms controlled by him — UBICS Technologies Pvt Ltd and UB Engineering Pvt Ltd.

According to the chargesheet, Mallya, KFA along with IDBI bank officials were “criminally conspired to obtain funds to the tune of Rs 860.92 crore despite weak financials, negative net-worth, non- compliance of corporate credit policy of new client, non- quality collateral security and low credit rating of the borrower, out of which Rs 807.82 crore of principal amount remains unpaid”.

The ED chargesheet shows how Mallya routed overseas over Rs 417 crore of the Rs 860.92 crore he secured as loan from IDBI Bank for aircraft rental leasing and operational expenses of Kingfisher Airlines.

Out of the total loan of Rs 860.92 crore, sanctioned and disbursed by IDBI, Rs 423 crore was remitted out of India, the chargesheet said. “The said payments were shown to be made towards aircraft rental leasing and maintenance, servicing and spare parts,” it said.

“Vijay Mallya and others accused are guilty of money laundering under Section 3 and punishable under Section 4 of PMLA. Trial should be started against them and property attached (frozen) in the matter worth Rs 808 crore should be confiscated,” the chargesheet said in its concluding remark.

The total loan sanctioned by the IDBI bank to Kingfisher Airlines was Rs 860.92 crore. The loan amount rises to Rs 900 crore adding interest.

The ED has requested the court to confiscate Rs 808 crore worth of property of Mallya, which includes his farmhouse near Mumbai, UB City Mall in Bengaluru, his residential property in Mumbai and Bengaluru to recover the dues. The ED has already frozen Rs 9,680 crore of property belonging to Mallya and Kingfisher Airlines.

Vijay Mallya is in his safe haven in London after siphoning up over Rs 9,000 crore of loan taken from different banks in India over a period 11 years. Mallya owes loans to as many as 17 lenders, including the SBI, IDBI Bank, Punjab National Bank, Bank of India, Bank of Baroda, United Bank of India, Central Bank, UCO Bank, Corporation Bank, Indian Overseas Bank, Federal Bank, Punjab and Sind Bank and Axis Bank among others.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Trending now

Jammu and Kashmir: Ex-BJP district President Wasim Bari killed by terrorists, father and brother also murdered

Former BJP Bandipora President Wasim Bari killed by terrorists who shot at him outside his shop

Turkey govt plans to convert Byzantine cathedral Hagia Sophia into a mosque again. Read about this historical symbol of Muslim-Christian rivalry

Hagia Sophia, originally a Christian cathedral, was converted into a mosque and then into a museum, will be converted to mosque again

Only Muslims go to heaven, Ravish Kumar-like non-Muslims can only hope for a mild level of hell: Dr Zakir Naik explains

Naik said that virtues like honesty and charity cannot ensure qualifying marks for heaven or Jannah. Only Muslims can go to heaven and non-Muslims will go to hell by default, he says.

Muslims hurled abuses and casteist slurs, attacked us with sharp weapons: Mahadalits in Begusarai

Victim Shankar Paswan claimed that members of Muslim community addressed Mahadalits with casteist slurs before attacking them with weapons

No, Indian PUBG user did not make Chinese player say ‘Hindustan Zindabad’, Times Network’s website fell for satire

Times group's MensXP falls for satire, believes that Indian PUBG user made Chinese player say 'Hindistan Zindabad'

Jyoti Basu is the mass murderer India forgot

Please don’t feel bad about speaking ill of the Late Jyoti Basu. If there is another world, be certain that there are (at least) 28,000 voices from the other side backing you up.

Recently Popular

Australian surfer Carmen Greentree abducted and raped for 2 months in a houseboat in Kashmir in 2004, pressurised to convert to Islam

Carmen Greentree has penned a book titled "A Dangerous Pursuit of Happiness" narrating her abduction and rape in Kashmir.

Jyoti Basu is the mass murderer India forgot

Please don’t feel bad about speaking ill of the Late Jyoti Basu. If there is another world, be certain that there are (at least) 28,000 voices from the other side backing you up.

The dark, disturbing world of mean and hateful ‘sly’ Bollywood insider gossip featuring Rajeev Masand, PinkVilla and others

Following Sushant Singh Rajput's suicide, prominent film journalists and critics were accused of writing vile 'blinds' aka unverified, vile gossip.

Payal Rohatgi’s Twitter account suspended, the actress says she is being targeted by ‘liberals and extremists’

Payal Rohatgi has stated that her efforts to share facts has been projected in a bad light by liberals and extremists who control Twitter.

Only Muslims go to heaven, Ravish Kumar-like non-Muslims can only hope for a mild level of hell: Dr Zakir Naik explains

Naik said that virtues like honesty and charity cannot ensure qualifying marks for heaven or Jannah. Only Muslims can go to heaven and non-Muslims will go to hell by default, he says.

Veteran Bollywood actor Jagdeep dies at 81

Jagdeep is father of Bollywood actor Javed Jafri.

Jammu and Kashmir: Ex-BJP district President Wasim Bari killed by terrorists, father and brother also murdered

Former BJP Bandipora President Wasim Bari killed by terrorists who shot at him outside his shop

Watch: BJP’s Sambit Patra and Congress’ Gaurav Vallabh hurl Sukanya Devi and Ranga-Billa cases at each other in intense TV debate

When Congress spokesperson equated Rajnath Singh and Amit Shah with Ranga-Billa, BJP's Sambit Patra raised Sukanya Devi rape case

Indian Army decides to ban 89 apps for its personnel: Here are the details

Other than Chinese apps there are other few apps like Facebook, Instagram, etc which the Indian Army has also banned for its personnel

Mahesh Bhatt predicted her end, threw chappal at her: Kangana Ranaut’s team denies Pooja Bhatt’s claims about Bhatts helping Kangana

Bollywood has always preferred to promote its own progeny and by denying, Pooja Bhatt is running away from the undeniable fact

Turkey govt plans to convert Byzantine cathedral Hagia Sophia into a mosque again. Read about this historical symbol of Muslim-Christian rivalry

Hagia Sophia, originally a Christian cathedral, was converted into a mosque and then into a museum, will be converted to mosque again

UP police arrest suspended SHO Vinay Tiwari and KK Sharma for tipping Vikas Dubey about the raid

UP police arrested suspended SHO Tiwari and Beat In-charge Sharma of Chaubeypur police station for tipping Vikas Dubey ahead of police raid.

Only Muslims go to heaven, Ravish Kumar-like non-Muslims can only hope for a mild level of hell: Dr Zakir Naik explains

Naik said that virtues like honesty and charity cannot ensure qualifying marks for heaven or Jannah. Only Muslims can go to heaven and non-Muslims will go to hell by default, he says.

Muslims hurled abuses and casteist slurs, attacked us with sharp weapons: Mahadalits in Begusarai

Victim Shankar Paswan claimed that members of Muslim community addressed Mahadalits with casteist slurs before attacking them with weapons

Viśiṣṭvividhīkaran: Sanatan Dharma and Qualified Diversification

Sanatan Dharma has been a coming together of Diversification and paths to the Truth, with various sects and traditions over the millennia

Connect with us

235,209FansLike
401,340FollowersFollow
271,000SubscribersSubscribe