Vijay Mallya

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That notice was changed a month later to 'report' when he leaves the country. CBI officials say it was a technical mistake that was corrected. Curiously, Mallya left India on the same day banks moved debt recovery tribunal to seek his arrest and seize his passport.
 
That notice was changed a month later to 'report' when he leaves the country. CBI officials say it was a technical mistake that was corrected. Curiously, Mallya left India on the same day banks moved debt recovery tribunal to seek his arrest and seize his passport.
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==200?: HDFC Bank refused loans==
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[https://www.cnbctv18.com/finance/this-is-the-reason-why-hdfc-bank-refused-loans-to-vijay-mallya-and-nirav-modi-3962891.htm  Ritu Singh |This is the reason why HDFC Bank's Aditya Puri refused loans to Vijay Mallya and Nirav Modi | CNBC TV18 |July 11, 2019]
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Aditya Puri, the top boss at India's most valuable bank, is not known to have built HDFC Bank as the shareholders' darling by giving loans to risky borrowers.
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At an event held in Mumbai, where financial journalist and author Tamal Bandopadhyay was launching his second book on Puri's bank, "HDFC Bank 2.0, Dawn to Digital", the longest-serving CEO was asked why he refused loans to his "friends" Vijay Mallya and Nirav Modi, both now fugitive offenders that owe large sums of money to banks.
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In his typical tongue in cheek style, Puri answered by saying that neither Vijay Mallya nor Nirav Modi was his friends. He said, "Somebody in Mallya’s office will tell you, every time the call came from me, Mallya gaali deta tha (he used to abuse). His blood pressure would go up", referring to how the bank declined Mallya's requests for loans from HDFC Bank.
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"Friendship and banking are not co-related," he said, "If you are a bad risk, you are a bad risk. You can be my good friend, I can give you coffee and send you away."
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Puri revealed that both Mallya and Modi had come to him for a loan, "I gave them coffee and told them that I will consider the loan."
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Pointing then towards his former, long-time deputy Paresh Sukhtankar, who resigned from the bank last year, Puri said it was him that turned down Vijay Mallya's proposal finally.
  
 
==2012-18==
 
==2012-18==

Latest revision as of 19:01, 11 July 2019

Vijay Mallya's debt, some facts; Graphic courtesy: The Times of India, March 16, 2016

This is a collection of articles archived for the excellence of their content.

Contents

[edit] History

The Times of India, Mar 16 2016

Saurabh Sinha

Distinguished people who served as Kingfisher's independent directors; Graphic courtesy: The Times of India, Mar 16 2016

Vijay Mallya may be a pariah today with both the Congress and the BJP disowning him, but there was a time when who's who of India had served his Kingfisher Airlines (KFA) as its independent directors. The airline, founded in 2005, saw distinguished people such as heart surgeon Dr Naresh Trehan, tennis great Vijay Amritraj, former chairman of LIC and Sebi G N Bajpai, ex-finance secretary Piyush Mankad, Rediff India founder Diwan Arun Nanda and bankers of repute serving as its independent directors.

Bajpai introduced key reforms at Sebi and prepared LIC to face the onslaught of foreign insurance giants in India once the sector was deregulated. He was a member of the governing board of IIM Lucknow. He was also chairman of the NSE and Stock Holding Corporation of India, apart from being on the board of companies like ICICI Bank, Axis Bank, General Insurance Corporation, Jindal Steel and Tata Chemicals. But unlike these companies, Mallya's ambitious plans for KFA were taking it towards its doom. The fortunes of the airline, which never reported a profitable quarter, nosedived in 2007 when Mallya decided to buy Captain Gopinath's Air Deccan to fly abroad on its licence without waiting for five years as per rules.

“Suddenly , we had a fleet of 100 planes and frankly it was just too much for us to handle,“ said a person, who was among the people running KFA. Dec can founder G R Gopinath was on the combined airlines' board, but was eased out later as KFA subsumed his airline.

Then financial losses mounted, flights were slashed and payments to everyone -employees, airports, oil companies, tax authorities and provident fund -stopped. This was the time when KFA saw an exodus of its independent directors.

Among the first to sense trouble in KFA and leave the board was Dr Trehan. The eminent heart surgeon had joined in October 2008 and quit in September 2010. Amritraj quit in March 2012 on the ground that his travel schedule did not allow him to attend KFA board meetings. Within days, another independent director Anil Kumar Ganguly also quit, citing “indifferent health“.

Things came to such a pass that in the end, Mallya found it difficult to meet Sebi's listing norm, which requires that at least half of the board must be comprised independent directors. In a desperate attempt to meet the listing norm, KFA got the consent of three people in March 2012 to be independent directors. They were -former Vijaya Bank chief Manmohan Singh Kapur, corporate lawyer Lalit Bhasin and former MD of Kolhapur Sugar Mills Shrikant Ruparel.

The airline flew for just six months after this and was grounded in October 2012. As hope of KFA flying again diminished and then vanished, all remaining independent directors quit.

[edit] A profile

Mallya, was declared as 'wilful defaulter' by lenders following huge debts on his Kingfisher Airlines. He was ranked at 84th position in 2013, with a net worth of USD 800 million. Earlier, in March 2013, Mallya was dropped from Forbes global rich list, while he had moved out of the billionaire league way back in 2012. Amid huge debt burden and mounting losses at Kingfisher Airlines, Mallya's fortunes has been declining continuously over the recent years. The airline owes Rs 7,600 crore to 17 banks.

In February 2012, the banks had formally declared loan recall on KFA and began recovery process. They have recovered around Rs 2,000 crore by selling pledged shares. Already, United Bank of India has won a legal backing on its decision to declare Mallya and other top executives of the airline as "wilful defaulters".

India's largest bank SBI has also sent a notice to tag them as "wilful defaulters". State-run PNB and IDBI Bank, and private lenders Federal Bank and Axis Bank are also in the process of doing the same. Burdened with huge losses and large debts, Kingfisher Airlines stopped flying in October 2012 and its flying licence also lapsed about two months later. About Mallya Forbes India in October 2012 had said that the 'king of good times' is having nothing but bad times lately.

[edit] Some facts, in brief (as in October 2017)

BCCL, October 4, 2017: The Times of India


1. Vijay Mallya, once the king of good times, was arrested from his residence in London. He is wanted in connection to a loan default case to the tune of Rs. 9,000 crore.

2. Liquor baron Vijay Mallya was arrested from his residence in London. He had been declared an absconder by the Indian Prevention of Money Laundering Act (PMLA) court in a money launering case.

3. He has repeatedly refused to appear before in India since he secretly fled to UK in 2016.

4. Mallya is a defaulter on loan payments to the several state-owned banks and allegdedly misusing the funds.

5. The judge asked Mallya, "Make sure you do not break any conditions of your bail. If you do so, you will be back in custody."

6. However, Vijay Mallya was exempted from appearing personally on the next hearing as his defence team claimed he was mobbed by media persons during his entry into the court.

7. While talking to media outside the court, Vijay Mallya said, "I deny all allegations that have been made and I will continue to deny them."

8. He further added, "I have not eluded any court...I have enough evidence to prove my case.”

9. "You can keep dreaming about a billion pounds; you cannot prove anything without facts," Mallya said.

10. Vijay Mallya is wanted in India on loan defaults to several banks amounting to nearly Rs 9,000-crore.

11. Vijay Mallya is accused of diverting his erstwhile Kingfisher Airlines’ loan into his IPL team, the Royal Challengers Bangalore.

12. However, Vijay Mallya denied all these allegations and said that he has not diverted the loan anywhere.

13. Vijay Mallya was arrested by Scotland Yard in April 2017 on the extradition request of Indian government.

14. Later, he was released on bail, which was further extended until December 4, 2017.

15. Vijay Mallya made headlines when he was spotted in the Edgbaston stadium during India vs Pakistan ICC Champions Trophy 2017 match in Birmingham.

16. Vijay Mallya was heckled by cricket fans who chanted “Chor, Chor” as he arrived to watch the India vs South Africa ICC Champions Trophy 2017 match at The Oval cricket stadium in London.

17. Opposition parties blamed BJP government for being soft on Vijay Mallya, who made a quiet exit to London with seven heavy bags.

18. Vijay Mallya, once hailed as the king of good times, is known for his lavish lifestyle.

19. He is the owner and chairman of the United Breweries Group and owns Kingfisher brand.

20. According to media reports, Vijay Mallya’s Indian Premiere League team and Formula One team are worth Rs. 633 crore.

21. He is crazy about cars and owns a collection of more than 250 vintage cars.

22. According to reports, Vijay Mallya owns 26 properties all over the world, including New York, South Africa, Scotland, Monaco, South Africa, Napa Vallery, Goa, Mumbai, Bangalore and New Delhi.

23. Mallya’s ancestral home in Bengaluru and the palatial Kingfisher Villa in Goa shows his king size life as every article, including napkins, are personalized for the liquor baron. However, the Kingfisher Villa has been taken over by banker’s consortium represented by SBICAPS due to the non-payments of loans.

24. Vijay Mallya has personal interest in horse breeding and racing. Mallya’s horse Angel Dust won The Kingfisher Derby Bangalore (Gr.1) 2015.

25. Vijay Mallya’s Page 3 parties are the talk of town, which are attended by the top shot models and A-list stars.

26. The Kingfisher calendars showcase top models from the world of fashion.

27. Vijay Mallya chooses exotic destinations all over the world to shoot the Kingfisher calendar.

28. Several Bollywood actresses including Deepika Padukone, Katrina Kaif, Lisa Haydon, Nargis Fakhri and Esha Gupta have appeared on the Kingfisher calendar.

29. Vijay Mallya’s son Sidharth Mallya and Deepika Padukone made headlines when they were seen kissing in full public view in 2011. Deepika was allegedly in a brief relationship with Sidharth Mallya.

30. However, some media reports claim that Deepika Padukone dumped Sidharth Mallya for ‘citing irreconcilable differences in class and status’.

31. Vijay Mallya made entry into aviation business and launched Kingfisher Airlines on his son Sidharth Mallya’s 18th birthday in year 2005.

32. The Kingfisher Airlines stopped flying in year 2012 due to huge unpaid bank loans and salary arrears of employees.

33. SBI and some other banks declared Vijay Mallya wilful defaulter for not paying their loans.

[edit] Personal life

[edit] Pinky Lalwani, third wife?/ 2018

Pinky Lalwani

Met the girl who is all set to tie the knot with Vijay Mallya, Pinky Lalwani | Mar 28, 2018 | IndiaTimes/ The Times of India


Kingfisher’s scion Vijay Mallya, who was once known as India's king of good times, made headlines [in March 2018] as he was all set to get married. He was also wanted in connection to a loan default case to the tune of Rs. 9,000 crore.

Liquor baron Vijay Mallya met Pinky in 2011, when he offered her air hostess job in Kingfisher Airlines.

Since then, she has always been by his side. Pinky Lalwani also shares a close bond with Mallya's mother.

According to reports, Vijay and Pinky were in a live-in relationship since they started dating.

Reportedly, Vijay and Pinky were spotted together celebrating their anniversary in mid-March –[2018].

Pinky Lalwani was also present with Mallya at the extradition case at Westminster Magistrates Court in London.

Vijay Mallya is still legally married to his childhood friend Rekha Mallya. It seems that he has something special for air hostesses as his first wife Sameera Tyabjee was also an air hostess.

[edit] Earlier…

Earlier, liquor baron Vijay Mallya was arrested from his residence in London. He had been declared an absconder by the Indian Prevention of Money Laundering Act (PMLA) court in a money laundering case.

He has repeatedly refused to appear before in India since he secretly fled to UK in 2016.

Mallya is a defaulter on loan payments to the several state-owned banks and allegdedly misusing the funds.

The judge asked Mallya, "Make sure you do not break any conditions of your bail. If you do so, you will be back in custody."

However, Vijay Mallya was exempted from appearing personally on the next hearing as his defence team claimed he was mobbed by media persons during his entry into the court.

While talking to media outside the court, Vijay Mallya said, "I deny all allegations that have been made and I will continue to deny them."

"You can keep dreaming about a billion pounds; you cannot prove anything without facts," Mallya said.

Vijay Mallya is wanted in India on loan defaults to several banks amounting to nearly Rs 9,000-crore.

Vijay Mallya is accused of diverting his erstwhile Kingfisher Airlines’ loan into his IPL team, the Royal Challengers Bangalore.

Vijay Mallya was arrested by Scotland Yard in April 2017 on the extradition request of Indian government.

Later, he was released on bail, which was further extended until December 4, 2017.

Vijay Mallya made headlines when he was spotted in the Edgbaston stadium during India vs Pakistan ICC Champions Trophy 2017 match in Birmingham.

Vijay Mallya was heckled by cricket fans who chanted “Chor, Chor” as he arrived to watch the India vs South Africa ICC Champions Trophy 2017 match at The Oval cricket stadium in London.

Opposition parties blamed BJP government for being soft on Vijay Mallya, who made a quiet exit to London with seven heavy bags.

Vijay Mallya, once hailed as the king of good times, is known for his lavish lifestyle.

He is the owner and chairman of the United Breweries Group and owns Kingfisher brand.

According to media reports, Vijay Mallya’s Indian Premier League team and Formula One team are worth Rs. 633 crore.

He is crazy about cars and owns a collection of more than 250 vintage cars. (Photo: Facebook)

According to reports, Vijay Mallya owns 26 properties all over the world, including New York, South Africa, Scotland, Monaco, South Africa, Napa Vallery, Goa, Mumbai, Bangalore and New Delhi.

Mallya’s ancestral home in Bengaluru and the palatial Kingfisher Villa in Goa shows his king size life as every article, including napkins, are personalized for the liquor baron. However, the Kingfisher Villa has been taken over by banker’s consortium represented by SBICAPS due to the non-payments of loans.

Vijay Mallya has personal interest in horse breeding and racing. Mallya’s horse Angel Dust won The Kingfisher Derby Bangalore (Gr.1) 2015.

Vijay Mallya’s Page 3 parties are [were] the talk of town, which are attended by the top shot models and A-list stars.

The Kingfisher calendars showcase[d] top models from the world of fashion.

Vijay Mallya chose exotic destinations all over the world to shoot the Kingfisher calendar.

Several Bollywood actresses including Deepika Padukone, Katrina Kaif, Lisa Haydon, Nargis Fakhri and Esha Gupta have appeared on the Kingfisher calendar.

Vijay Mallya’s son Sidharth Mallya and Deepika Padukone made headlines when they were seen kissing in full public view in 2011. Deepika was allegedly in a brief relationship with Sidharth Mallya.

However, some media reports claim that Deepika Padukone dumped Sidharth Mallya for ‘citing irreconcilable differences in class and status’.

Vijay Mallya made entry into aviation business and launched Kingfisher Airlines on his son Sidharth Mallya’s 18th birthday in year 2005.

The Kingfisher Airlines stopped flying in year 2012 due to huge unpaid bank loans and salary arrears of employees.

SBI and some other banks declared Vijay Mallya wilful defaulter for not paying their loans.

[edit] Timeline

[edit] 2005-2017: business troubles

Vijay Mallya loan default case: Rise and fall of the King of Good Times , April 19, 2017: The Times of India

Liquor baron Vijay Mallya, wanted in India for defaulting on over Rs 8,000 crore in bank loans, was arrested in London on Tuesday. Within hours, a court granted him bail. Mallya's wanted in India on charges of financial irregularities and loan default related to his Kingfisher Airlines. Here's a look at how the King of Good Times landed in this soup:

2005

Kingfisher Airlines launched

2007

Kingfisher Airlines acquires Deccan Airlines

Nov 2010

Banks recast Kingfisher Airlines debt

Dec 2011

Kingfisher Airlines accounts frozen for non-payment of Rs 70 crore


Mumbai International Airport seeks payment of 90 crore dues

Oct 2012

Partial lockout at Kingfisher Airlines, staff go on strike

Dec 31, 2012

Kingfisher Airlines loses flying license

Oct, 2013

Kingfisher Airlines closed down

Aug 2014

CBI probe against IDBI and Kingfisher Airlines

Mar 2, 2016

Vijay Mallya flees to UK

April 24, 2016

Mallya's passport revoked

May 2, 2016

Resigns from Rajya Sabha, a day before ethics committee of the RS was prepared to recommend his expulsion

June 11, 2016

Enforcement Directorate says it has provisionally attached Rs 1,411 crore of Mallya's assets and properties

Nov, 2016

During bilateral talks between Prime Minister Modi and British counterpart Theresa May, India asks Britain to extradite 60, including Mallya

Sep 3, 2016

ED's second attachment order for a further Rs 6,630 crore

Dec 2016

By end of the year, ED had attached a total of Rs 9,661 crore worth of assets of Mallya and Kingfisher in India

Jan 23, 2017

CBI arrests former IDBI chairman Yogesh Aggarwal, eight others

Jan 31, 2017

CBI court issues NBW against Mallya in Rs 720 crore IDBI Bank loan default case

Feb 10, 2017

India requests UK High Commission for Vijay Mallya's extradition

Mar 1, 2017

FM Arun Jaitley travels to UK, Prime Minister Theresa May breaks protocol to meet him, Mallya's extradition among issues discussed

April 8, 2017

Mallya's Kingfisher Villa sold for Rs 73 crore to actor Sachin Joshi

April 18, 2017

Mallya arrested by Scotland Yard, granted bail

[edit] 2002- 2015: most parties, most agencies helped Mallya

Congress, BJP, CBI: How all helped fugitive businessman Vijay Mallya, September 14, 2018: The Times of India


"I met the finance minister before I left, repeated my offer to settle with the banks. That is the truth." As fugitive liquor baron Vijay Mallya uttered these words outside a London court, a blame game ensued.

Congress pinned the blame on finance minister Arun Jaitley while BJP went so far as to say that Mallya's Kingfisher Airlines was in fact Rahul Gandhi’s company that he owns by proxy. The fact is, both parties helped Mallya at various stages of his success and crisis. Here’s how:

RAJYA SABHA ENTRY

Both BJP and Congress helped Vijay Mallya enter Rajya Sabha, with help from JD(S). He was elected to the Rajya Sabha in 2002 as an independent member from Karnataka with the support of Congress and JD (S). In 2010, he got elected for a second term with the backing of BJP and JD(S).

BAD LOANS GET WORSE

The airline, launched in 2005, kept on expanding furiously and piling loans despite making big losses as early as 2009. Banks kept lending him money to rollover Kingfisher's loans and that, some say, wouldn't have been possible without political support, especially since many of these banks were government owned.

A consortium of 17 banks collectively lent over Rs 7,000 crore to the crisis-ridden airline.

ESCAPE

That's been the focus of politics ever since the disgraced tycoon said that he met finance minister Arun Jaitley in Parliament before he left for London. BJP MP Subramanian Swamy had alleged earlier (and now Congress does too) that CBI, which was probing Kingfisher's financial irregularities, had issued a notice in October 2015 to block Mallya from trying to leave India.

That notice was changed a month later to 'report' when he leaves the country. CBI officials say it was a technical mistake that was corrected. Curiously, Mallya left India on the same day banks moved debt recovery tribunal to seek his arrest and seize his passport.

[edit] 200?: HDFC Bank refused loans

Ritu Singh |This is the reason why HDFC Bank's Aditya Puri refused loans to Vijay Mallya and Nirav Modi | CNBC TV18 |July 11, 2019


Aditya Puri, the top boss at India's most valuable bank, is not known to have built HDFC Bank as the shareholders' darling by giving loans to risky borrowers.

At an event held in Mumbai, where financial journalist and author Tamal Bandopadhyay was launching his second book on Puri's bank, "HDFC Bank 2.0, Dawn to Digital", the longest-serving CEO was asked why he refused loans to his "friends" Vijay Mallya and Nirav Modi, both now fugitive offenders that owe large sums of money to banks.

In his typical tongue in cheek style, Puri answered by saying that neither Vijay Mallya nor Nirav Modi was his friends. He said, "Somebody in Mallya’s office will tell you, every time the call came from me, Mallya gaali deta tha (he used to abuse). His blood pressure would go up", referring to how the bank declined Mallya's requests for loans from HDFC Bank.

"Friendship and banking are not co-related," he said, "If you are a bad risk, you are a bad risk. You can be my good friend, I can give you coffee and send you away."

Puri revealed that both Mallya and Modi had come to him for a loan, "I gave them coffee and told them that I will consider the loan."

Pointing then towards his former, long-time deputy Paresh Sukhtankar, who resigned from the bank last year, Puri said it was him that turned down Vijay Mallya's proposal finally.

[edit] 2012-18

Vijay Mallya’s legal troubles, in India and the UK: 2012-18
From: December 11, 2018: The Times of India

See graphic:

Vijay Mallya’s legal troubles, in India and the UK: 2012-18

[edit] Business, as in 2006

India Today December 29, 2008

Vijay Mallya, hailed as India’s Richard Branson, acquired Glasgow-based Scotch whisky group Whyte & Mackay for £595 million in an all-cash deal in 2007, making him the second-largest spirits manufacturer in the world. It also restored partial peace with the Scotch Whisky Association which had argued that UB’s Indian-made products were not genuine whisky, as they were distilled from molasses. With W&M, the association invited him to be a member.

[edit] Court rulings

[edit] 2018: UK court awards BOC $90m against Mallya

UK court awards BOC Aviation $90m against Vijay Mallya, February 13, 2018: The Times of India


Embattled industrialist Vijay Mallya has lost a legal battle linked to his defunct Kingfisher Airlines, with the UK high court awarding Singaporebased aircraft leasing company BOC Aviation an estimated $90 million (approximately Rs 578.4 crore) in claims.

The case pertains to leasing of aircraft by Kingfisher Airlines.

A judge of the business and property courts of the high court, in a judgment dated February 5, ruled that “the defendants have no real prospect of successfully defending the claim”. The defendants in the claim brought by BOC Aviation in Singapore and BOC Aviation (Ireland) Ltd have been listed as Kingfisher Airlines Ltd and United Breweries (Holdings) Ltd.

“We are pleased with the judgment but would not like to comment further at this stage,” said a spokesperson for BOC Aviation in Singapore.

Mallya, 62, also faces trial in India over alleged loan defaults to the tune of Rs 9,000 crore.

[edit] 2018: Mallya loses in UK court

May 9, 2018: The Times of India


Fugitive businessman Vijay Mallya suffered a major setback in his legal battles after a British high court judge ruled that an Indian judgment against him can legally be enforced against his assets in England and Wales.

UK enforcement officers can now take steps to enforce the Indian judgment, which could include seizing and selling off Mallya’s assets.

UK high court judge Andrew Henshaw QC ruled in favour of a consortium of 13 state-owned Indian banks led by State Bank of India, to which Mallya owes more than Rs 9,000 crore.


Banks mull enforcement options

UK HC judge Andrew Henshaw ruled the judgment dating January 19, 2017 of the Debt Recovery Tribunal (DRT), Bengaluru, which says Mallya owes Indian banks Rs 6,203 crore plus interest (Rs 9,863 crore as of Nov 22, 2017), can now legally be registered in England.

In his written judgment, Henshaw said: “There is a risk of the value of Mallya’s assets deteriorating, and, or, being subject to claims by other creditors, and a risk of Mallya being declared bankrupt. Mallya’s departure from India, to where he has never since returned, and his resistance to India’s application to extradite him to face trial on serious criminal charges, provide some grounds for regarding him as a fugitive from justice.”

On Nov 24, 2017, the banks had registered the judgment of the Indian DRT in English courts and obtained a freeze order stating that Mallya cannot dispose of or diminish his worldwide assets up to value of £1,145,000,000 (Rs 10,210 crore). But Mallya had applied to set the order registering the judgment aside and for the freeze order to be discharged.

Paul Gair, partner at TLT, the UK law firm representing the banks, told TOI: “In dismissing Mallya’s application, the HC has demonstrated its willingness to recognise judgments granted by courts in other jurisdictions, giving parties opportunities to enforce their judgments against any assets held here. This case also sets a strong precedent for parties to secure a worldwide freezing order when enforcing judgments against wilful defaulters. Banks are now considering the enforcement options available to them to recover sums due from Mallya under DRT judgment, which is now enforceable in England and Wales.”

George Hayman QC, representing Mallya, sought nod to appeal against registering the Indian judgment in the UK on grounds that DRT judgment was “not sealed with a seal which shows there is no upper limit on the pecuniary jurisdiction”, which he said was necessary for the judgment to be capable of registration as a judgment in England according to Reciprocal Enforcement of Judgments (India) Order.

[edit] Extradition from the UK

[edit] Delays in evidence arriving from India

Naomi Canton, UK judge takes dig at India's delay in giving proof in Mallya case, June 14, 2017: The Times of India


The court hearing to decide whether fugitive billionaire Vijay Mallya will be extradited to India has been pushed back to December -and may not even happen till next year. Chief magistrate Emma Arbuthnot at Westminster magistrates' court noted December 4 for a two-week hea ring on Tuesday after she heard there were delays in evidence arriving from the government of India.

Aaron Watkins, representing India, said the Crown Prosecution Service needed a further three-four weeks to receive the rest of the eviden ce from India and to review it.

Arbuthnot asked, “Are Indians normally very prompt in their responses? They have taken six months so far and we haven't got any further forward in the past 6 weeks.“ Noting December 4 for a two-week hearing on the Vijay Mallya extradition case, chief magistrate Emma Arbuthnot said, “If there is still no sign of the evidence, then April 2018 is a possibility (for the full hearing). If we have everything, then it may look like December.“

Watkins said there was a close working relationship with India on the case and the material received was “not insubstantial“.

The flamboyant businessman was remanded on conditional bail until December 4. July 6 is the next case management hearing.It's the equivalent of Tues day's hearing, and it's when the court will see if all the evidence has been admitted.Mallya has been told he does not have to attend the July 6 hearing.

Mallya, 61, later told reporters, “I deny all allegations that have been made and I will continue to deny them. Claming no loans were ever diverted, he said, “You can keep dreaming about a billion pounds; you cannot prove anything without facts.“

Ben Watson, acting for Mallya, said: “We have not yet received the final evidence from the government of India.“ He added that the evidence had been requested six weeks ago. “This began on January 31 and it's now June and we still don't have the case,“ he said, pushing for the hearing to be postponed till spring 2018.

“There has also been a second extradition request which we have not yet seen which adds to the uncertainty of this,“ Watson added. Replying to this, the Crown Prosecution told TOI: “There is no second extradition request. The defence asked about a second request that they believe the Indian government may submit, but at present there is nothing concrete to consider.“

Watson said that Mallya had faced a “battle“ to enter the court building and “cameras were thrust In his face“ and requested for physical barriers to be put up at the next hearing Mallya attended to “protect him from the press.“

The chief magistrate gave permission for Mallya to not attend the next case management hearing on July 11 at 2pm.

Dressed in white openneck shirt, flaunting a gold chain, grey trousers, a navy blue blazer and black shoes, Mallya's tanned face looked stressed and tired and he had bags under his eyes. He looked alternately at the packed press gallery , the judge and his counsel. He spoke in a confident voice to confirm his name and date of birth.

Despite constantly criticising the Indian media, outside the court room Mallya could not stop himself speaking to them.

Asked how he was, he replied: “Cheering for the Indian cricket team to great controversy .“ Asked, “Do you feel confident?“ he said, “We will see.“

“Why do you dislike this tribe (the media)?“ “I am more disliked than anything I dislike or like,“ he said. Still annoyed about the boos of `chor' during the India-South Africa cricket match, he continued: “I show up at the cricket match to cheer on my team and it becomes a media sensation.What can I do? There is no guarantee that anything I say will be reported the way I say it. The media sensationalises everything. I can't keep repeating myself everywhere and putting the correct facts forward, so I keep quiet.“ He added he would be attending the India-Bangladesh Champions Trophy semifinal on Thursday .

The chairman of UB Group, which brews Kingfisher Beer and is co-owner of the Sahara Force India Formula One racing team, is accused of defaulting on loans of more than Rs 9,000 crore after Kingfisher Airlines, which he founded, collapsed in 2012 following years of losses. He is also accused of money laundering, fraudulently obtaining credit and other financial crimes.

[edit] 2018 Dec: UK judge permits extradition Mallya to India

Naomi Canton, Vijay for govt as London court says Mallya can be sent home, December 11, 2018: The Times of India

The Mallya case in the Westminster Magistrates’ Court: the charges and the 2018 Dec ruling
From: Naomi Canton, Vijay for govt as London court says Mallya can be sent home, December 11, 2018: The Times of India

No Immediate Extradition, He Can Still Appeal

In a landmark success for Indian investigating agencies and a political boost to the Modi government, a UK judge on Monday ordered extradition of controversial businessman Vijay Mallya to India where he is wanted to face charges of fraud and money laundering.

Mallya, who fled the country in March 2016 in the wake of rising heat over his Rs 9,000 crore bank defaults, lost a key legal battle with the UK court rejecting allegations that the

CBI and ED were working on political directions and he was being framed in a false case.

Judge Emma Arbuthnot told Mallya, 62, at Westminster Magistrates’ Court on Monday, “I am ordering your extradition.” But she added, “You may have a long process in front of you,” referring to his appeal rights even as she rejected Mallya’s plea that he was victim of a witch-hunt. He remains on conditional bail.

The case will now be sent to the home secretary for a decision on whether to order his extradition. However, Mallya can appeal in the Court of Appeals, the Supreme Court and even the European Court of Justice, depending on how Brexit plays out. He said his legal team would review the verdict and consider options. Arbuthnot, however, made it clear that the CBI had a solid case against the businessman, rejecting his entire defence.

[edit] ‘No evidence that prosecution was politically led’

Neeraj Chauhan, ‘No evidence that prosecution was politically led’, December 11, 2018: The Times of India


Asthana Gets UK Judge’s Clean Chit

The UK court’s order to extradite Vijay Mallya has vindicated the Central Bureau of Investigation (CBI) after the agency battled the defence’s arguments ranging from accusations that it was working on a political agenda to the condition of Indian jails before the quality of its evidence prevailed.

The development also marks a boost for the agency’s special director Rakesh Asthana, who supervised the CBI’s effort to get the fugitive liquor baron back. In fact, this was the second win scored by the agency under him after the extradition of Christian Michel, the alleged middleman in the AgustaWestland deal.

An upbeat CBI issued a statement on Monday saying it hoped to bring Mallya back as soon as possible and pointed to judge Emma Arbuthnot’s remarks that “there is a great deal of evidence provided by government of India”.

“We are strong on law and facts and we were confident while perusing the extradition process,” CBI spokesperson Abhishek Dayal said.

The CBI, which started probing Mallya in 2014 first as part of a preliminary enquiry and later after registering a case in July 2015, faced numerous hurdles, including his flight to London on March 2, 2016. The probe picked up pace only after CBI formed a special investigation team in June 2016 with Asthana and joint director Sai Manohar to probe the Mallya fraud and the VVIP chopper scam. Asthana filed a chargesheet against Mallya and led extradition proceedings in London for one and a half years.

Mallya had questioned Asthana’s professional integrity during the trial but Arbuthnot rejected the allegations and said, “I find that there is no evidence that Mr Asthana has acted corruptly. I noted the (Indian) Supreme Court cleared Mr Asthana of the allegations made against his integrity and there was no reliable or significant evidence produced by the defence expert, Prof Lawrence Saez, which undermined that finding.” The judge added that there was “no evidence that the prosecution was corrupt or politically led”.

[edit] The loans funded many things, including vanity projects

Naomi Canton, ‘Loans used to fund anything, including two vanity projects’, December 11, 2018: The Times of India


UK Judge Emma Arbuthnot rejected controversial businessman Vijay Mallya’s allegations against the CBI and the claim that the condition in Indian jails was not safe.

She took a dim view of Mallya’s dealings, noting that his case was one of either failure by design, with possible financial motives, or that banks were beguiled by a “glamorous, flashy, famous, bejewelled, bodyguarded, ostensibly billionaire playboy who charmed and cajoled these bankers into losing their common sense and persuading them to put their own rules and regulations to one side”.

The development, coming close on the heels of the government’s success in securing the extradition of alleged AgustaWestland chopper scam middleman Christian Michel from the UAE, was immediately hailed by the government and BJP as evidence of their resolve in tracking down economic fugitives who had fled the country.

Outside court, Mallya said, “It’s unfortunate the judge has found a prima facie case that I made misrepresentations to IDBI Bank to loan money to my airline. I have my rights. My legal team will review the judgment in detail and consider various options and then decide the way forward. Do I regret being in a situation where I am paying legal fees? Yes, I do. I could have been doing something more productive with my time. But so long as I have proper rights, I will enforce them.”

Mallya’s lawyer Clare Montgomery QC, who was not present, had argued that Mallya was the victim of political persecution. Arbuthnot said, “I do not think he is being punished on account of his political opinions. I find because both Congress and BJP blame him for the losses of state banks I feel that it means there is no sign this is a false case amounted against him to assuage his CBI political masters as Saez would have,” she said referring to one of the defence witnesses, Prof Lawrence Saez, an academic at SOAS who has since passed away.

The judge also said there was no reason to suspect the credentials of CBI investigating officer Rakesh Asthana, who handled the case till he was sent on leave along with agency director Alok Verma over their public feud. “I find no evidence Asthana acted corruptly. I note the Supreme Court cleared Asthana of the allegations made against his integrity,” she added.

Pinky Lalwani, an associate of Mallya, who was in the public gallery, looked extremely upset as the judgment was read out while the businessman, who was in the dock, remained calm.

Arbuthnot listed examples of misrepresentation and fraud Mallya made when he took out loans for his airline that included various values Mallya gave the Kingfisher Airlines’ brand, the projected profits of the airline and the value of his and its net worth, as well as what the loans would be used for. She said, “There is a prima facie case of making false representations to make a gain for himself or others.”

She said Mallya used Kingfisher Airlines loans to fund anything, including “two vanity projects” — his Formula 1 racing team and a corporate jet for his own use — when the airline was on the verge of collapse. She also said Mallya’s investment of his $40 million payout from Diageo in a trust for his three children “was a diversion of funds in a flagrant breach of court orders, clear evidence of dispersal and misallocation of funds”.

[edit] Financial misdeeds

[edit] March 2016: Ex-KFA employees to sue Mallya over Rs 800cr dues

The Times of India, Mar 10 2016

Former Kingfisher Airline employees have decided to take its owner Vijay Mallya to court. In a couple of weeks a petition will be filed in the Supreme Court against Mallya and Kingfisher Airlines for non payment of salaries worth Rs 800 crore. The process of filing the petition has begun with data being collected from employees who worked for the airline. Early in the day , on Wednesday , the employees, the worst hit in the financial crisis that took down Mal ya's empire, protested out side Kingfisher House in Vile Parle East.

The now defunct airline owes about 5000 of its employ ees dues in unpaid salaries “We were not paid our sala ries for a period of 18 months ill the airline finally shut down,“ said Anirud Ballal, a ormer Kingfisher official During the year and a half that the airline went down, the workforce of 5000 dwindled down to 2,000 employees.

While Mallya's Indian employees were left high and dry, he followed all the labour laws when it came to Kingfisher employees based in London, Hong Kong. “Those based in London were paid their salaries on time, they were given advance notice about the closure and were paid a compensation for loss of job,“ he said.

Meanwhile, Mallya, who owes banks over Rs 9000 crore has been reported to have fled the country .

[edit] Links to Virgin Islands firm

The Times of India, Apr 08 2016

Leaks show Mallya linked to Virgin Islands firm

Chethan Kumar & Sandeep Moudgal

The Supreme Court asked Vijay Mallya when he would come back to India, saying he should first return for any meaningful negotiation on his offer to settle the Rs 9,000 crore he and his companies owe 17 public sector banks, reports Dhananjay Mahapatra.The SC also asked him to reveal details of properties owned by him and his kin. P 25 Industrialist Vijay Mallya, who has been declared a wilful defaulter by Indian banks, figures in the offshore leaks by International Consortium of Investigative Journalists (ICIJ), whose Panama Papers have rocked the world in the last few days.

Details accessed from the ICIJ website showed a British Virgin Islands firm -Venture New Holding Limited -which has been operational from February 15, 2006, is linked directly to Vijay Mallya, and not to any of his companies.

Tax haven entities of Mallya, a non-resident Indian, have been in focus after TOI reported the Karnataka high court observations in January 2014 that “Mallya had not come to the court with cle an hands“ in reference to a possible diversion of Rs 4,000 crore to a subsidiary in British Virgin Islands.

The mention in the latest offshore leaks comes even as state-owned banks are battling to recover more than Rs 9,000 crore of unpaid loans from Mallya, who soaked up public debt for his defunct Kingfisher Airlines.

The operations of Venture New Holding were carried out from 3 Vittal Mallya Road in Bengaluru, which is Mallya's residential address. His offshore has a direct link to a firm named Porticullus Trust Net, which, according to ICIJ, is a `one-stop solution' for the setting up of offshore accounts.Porticullus Trust Net has its origins in Cook Islands -an island group in South Pacific. And, protecting Mallya's identity until the leaks was Sharecorp Limited, which operated as a nominee shareholder.

[edit] Shell companies

Vijay Mallya created 20 shell companies, made personal staff directors: ED chargesheet , Jun 15, 2017 , The Times of India

HIGHLIGHTS

Mallya was holding directly or indirectly movable and immovable assets in the form of shares of public listed companies: ED

A total of 9 accused have been named in the chargesheet by the ED


Liquor baron Vijay Mallya had allegedly floated 20 shell companies, directors of which were either his personal staff or those who retired, the ED has said in its recent chargesheet filed in the KFA-IDBI money laundering case.

The central probe agency, meanwhile, is set to confiscate a coffee estate in Coorg in Karnataka and other assets in Bengaluru which it had attached under the Prevention of Money Laundering Act (PMLA), as it did with a Rs 100 crore farm house in Maharashtra's Alibaug recently.

The Enforcement Directorate had registered a criminal case in this deal last year and has attached assets worth over Rs 9,600 crore till now.

"Mallya was holding directly or indirectly movable and immovable assets, in the form of shares of public listed companies, by way of creating a web of shell companies.

The assets were being in shell/dummy companies created by Mallya," the ED said in its chargesheet filed in Mumbai on Wednesday.

The over 5,000 page chargesheet or prosecution compliant, with 57 pages of the main report and rest annexures, has been filed before a special PMLA court in Mumbai.

The chargesheet said Mallya had "formed a complex web structure of his group companies so as to indirectly control their affairs."

"He has nominated directors in those companies who were either his personal staff, retired company official or a third person," it said.

The agency identified the alleged shell firms as Ms PE Data Centre Resources Private Limited, Ms Pharma Trading Limited, Ms Kingfisher Finvest Limited, Devi Investment Private Limited, Ms Mallya Investment Private Limited, Ms Explicit Consultancy Private Limited, Ms Ambitious Computech Private Limited and Vilora Consultancy Private Limited among others.

Shell companies are defined as those firms which are set up by nominal paid-up capital, high reserves and surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income or high cash in hand among others.

It added "there were unencumbered (free of debt) properties more than Rs 1,760.03 crore in addition to the properties mentioned in the personal guarantee submitted by Mallya to the IDBI bank", indicating that these assets were not pledged as collaterals towards security of the bank loan.

Describing how the alleged siphoning off the funds happened in this case, the agency said, "It is suspected that major portion out of amount of Rs 417.29 crore was remitted out of India to overseas parties from IDBI bank."

It mentioned a transaction made to a firm which allegedly had fake or dummy directors.

"An amount of Rs 63.10 crore (approximately) was paid to Ms UBICS Technologies Pvt Ltd (controlled by Mallya). Directors are dummy directors acting on behalf of Mallya.

"This company was used as a special purpose vehicle to route the funds of Ms KFA as no other transaction from any other company has been noticed in this," it said.

"Thus, the acts of Mallya, Ms UBHL and others, establish that a criminal conspiracy was hatched for obtaining or sanctioning of bank loan to KFA in gross violations of established procedures and the airline had no intention for repayment of loan of Rs 900 crore since beginning.

"The said loan amount along with interest totalling Rs 1,301.67 crore therefore falls within the sweep of the proceeds of crime in terms of section .... of the PMLA," the chargesheet said.

Thus, it said, the accused have been "actually involved" with the concealment, possession, acquisition and use of the proceeds of crime and therefore knowingly and intentionally in the activity of money laundering as defined under section 3 of the PMLA and are liable for punishment under section 4 of the PMLA.

A total of 9 accused have been named in the chargesheet by the ED including Mallya, Kingfisher Airlines (KFA), United Breweries (Holding) Limited and senior employees and executives of the now-defunct airline and the IDBI (Industrial Development Bank of India) bank.

The agency, in the chargesheet, has called Mallya the "prime mover of the entire plot" and has described how funds obtained from the bank loan were allegedly routed illegally including "substantial payments" being diverted by the beleaguered businessman to the Formula-1 car racing event abroad and others.

The total loan sanctioned and disbursed by the IDBI bank to KFA was Rs 860.92 crore.

[edit] 20 shell companies where Mallya parked funds

Anupam Dasgupta, Revealed: 20 shell companies Mallya set up to park funds raised to save Kingfisher Airlines, Sep 26, 2017: The Times of India


HIGHLIGHTS

Vijay Mallya created 20 shell companies in India and abroad to park Kingfisher Airlines loans: ED

Shell companies created in UK, Ireland, France, the US, the UAE, and Singapore

Mallya's final extradition hearing is due on December 4 at the Westminster Magistrates' court in London


Vijay Mallya created 20 shell companies in India and at least 12 more abroad to park funds raised as loans to run the troubled Kingfisher Airlines, according to Enforcement Directorate (ED) officials.

While ED officials on Monday refused to name the companies floated abroad by Mallya to launder money as it could impact ongoing investigations, they said these entities were located in the UK, Ireland, France, the US, the UAE, and Singapore.

According to ED the companies directly or indirectly owned by Mallya in India where it believes Mallya diverted a large part of Rs 6,900 crore he raised from IDBI Bank and a consortium of banks led by the State Bank of India are: M/S Ganpathy Mallya Pvt Ltd; Deccan Lakes Systems Pvt Ltd; M/S Gem Investment & Trading Co Ltd; M/S Firstart Inc; Devi Investment Pvt Ltd; M/S Kingfisher Finvest Ltd; M/S Ambitious Computech Pvt Ltd; Ace Bin Tech Software Consultancy Pvt Ltd; Medi Galaxy Pvt Ltd; M/S Kamsco Industries Ltd; M/S Pharma Trading Ltd; H Parsons Pvt Ltd; Explicit Consultancy Pvt Ltd; M/S Watson Ltd; H Parsons Pvt Ltd; SEP Grace Appstix Technologies Pvt Ltd; Vilora Consultancy Pvt Ltd; M/S Endeavour Estates Pvt Ltd; and M/S P E Data Centre Resources Pvt Ltd.

While so far the Central Bureau of Investigation (CBI) and ED have conducted separate investigations in IBDI and SBI cases, the next charge sheet to be filed against Mallya will combine the two cases and also refer to the shell companies located abroad that were used to launder money.

If the two agencies manage to prove that Mallya-controlled companies in the UK too were used to launder money, it could strengthen their cases to have the former liquor baron extradited to India.

Mallya's final extradition hearing is due on December 4 at the Westminster Magistrates' court in London.

Mallya fled to Britain in March 2016 after non-bailable arrest warrants were issued against for defaulting on repayment of loans. He was arrested by the Scotland Yard in the UK and later released on bail. In the IDBI loan default case, Mallya has been declared a proclaimed offender.

ED holds that Kingfisher Airlines was incurring losses right from its inception but Mallya kept availing of loans from an array of Indian banks. According to ED, Mallya entered into a criminal conspiracy with bank officials to wrongly project Kingfisher Airline's brand value at Rs 3,406 crore when it should have been much less and then used it to raise loans.

[edit] Investigations by CBI

[edit] January 2017: arrest of IDBI officials

Written by Sreenivasan Jain, Tanima Biswas, January 28, 2017, The Times of India

`Mallya shrank his net worth by 80% in 9 days’, Jan 28, 2017: The Times of India


The Central Bureau of Investigation filed a chargesheet and arrested eight former officials of IDBI Bank and Kingfisher Airlines, including former CMD of IDBI Bank Yogesh Aggarwal in the loan default case related to Vijay Mallya. The liquor baron, who was named as an absconder, was chargesheeted as well. But what exactly was the role of the former IDBI top boss and how according to CBI rules were flouted to grant a 1,000-crore loan to Kingfisher.


The Central Bureau of Investigation (CBI) in its chargesheet has said that IDBI Bank offici als, who ha ve been ar rested in the Kingfisher Airlines case, diluted the security requirements in respect to the Rs 950-crore loan in two stages -before and after the loan sanction -thereby facilitating disbursement. The chargesheet highlights several instances where the sanction process was weakened to allow loans to a company that was rated sub-investment grade and did not fall within IDBI Bank's own para meters for credit-worthy companies. Also, the bankers waived requirement for additional security while advancing this loan, the chargesheet said.

One indication of the dilution was that liquor baron Vijay Mallya shrank his declared net worth by 80% in nine days. While his statement of assets in respect of an earlier term loan gave Rs 1,395 crore as his net worth on March 31, 2009, at the time of offering a personal guarantee his net worth was shown as only Rs 285 crore. The agency has said that there was no intent on the part of Mallya to repay and there was a criminal conspiracy to this end.

CBI sources say that Reserve Bank of India or RBI guidelines were ignored and the loan was granted to Mr Mallya in three tranches, despite Kingfisher's weak financial position and low credit rating.

According to sources in the CBI, Kingfisher applied for a corporate loan of Rs. 750 crore to IDBI on October 1, 2009. Even as this application was pending, Mr Mallya met with the then IDBI chairman Yogesh Agarwal on October 6, seeking a short term loan of Rs. 150 crore. On the very next day, Kingfisher officially filed for this loan and it was sanctioned immediately.

Again on November 4, Kingfisher applied for another short term loan to IDBI, which was, once again, granted the same day. Kingfisher Chief Financial Officer Raghu Nathan wrote to IDBI mentioning a meeting between Mr Mallya and Mr Aggarwal, which led to this loan being sanctioned the same day.


The credit committee of IDBI was to meet to consider Kingfisher's corporate loan application later that month. For that Kingfisher had to pledge its unencumbered shares, a mandatory condition to get the loan.

But the CBI says on November 10, Mr Mallya mailed Kingfisher CFO Raghu Nathan telling him there was no need to pledge the shares because he had already discussed this with the IDBI CMD and that was the 'accepted position'.

The IDBI credit committee had a meeting on this on the 24th of the month and Mr Aggarwal allegedly approved the minutes, accepting Mr Mallya's condition.

CBI sources also claim that 263 crores, which was a part of the loan, has been diverted out of the country and used to pay up previous loans of Kingfisher.

Despite repeated attempts, lawyers of the arrested former IDBI officials have not responded to NDTV's request for comment on these allegations.

Vijay Mallya has been out of the country since last April, ever since multiple probes were initiated against him for defaulting on loans worth 9,000 crores, taken from several banks. Mr Mallya, presently in United Kingdom, was questioned by the CBI in the early stages of investigation, But he has not appeared in front of either the CBI or the Enforcement Directorate ever since despite a non-bailable warrant against him.

Mr Mallya in tweets claimed that the money was not misused and that he had submitted documentary evidence with the CBI.

He has said he is being subjected to a 'witch hunt'. "Till this minute there is no final judicial determination on what KFA owes to Banks and what I may owe in my personal capacity after trial. Yet it is reported that I have fled or run away owing money to banks that I never ever borrowed in the first place," Mr Mallya said.

[edit] Loans

[edit] What Mallya owes the banks

VijayV Singh, Court summons Mallya under fugitive offenders ordinance, July 1, 2018: The Times of India

Hearing On Aug 27 On Confiscation Of Assets Worth ₹12,500Cr

A special court issued notice to businessman Vijay Mallya to appear before it on August 27 for a hearing on confiscation of his properties worth Rs 12,500 crore under the centre promulgated Fugitive Economic Offenders Ordinance.

Under this ordinance, the investigation agency makes an application before the court for declaring Mallya holed up in London, a fugitive economic offender. The court then issues notice giving limited time period for him to present his case. The court would pass an order after hearing both the parties. Once the court declares Mallya a fugitive economic offender, the investigating agency is free to go ahead and confiscate the properties, including those purchased before the commission of the crime and auction the same without having to wait for the outcome of the trial. The money laundering provisions under the PMLA permits auction of properties only after he is convicted by a court of law.

Last week, ED has submitted an application to the special court requesting to declare Mallya a fugitive economic offender along with details of his attached assets worth Rs 12,500 (shares worth Rs 11,000 crore and other moveable-immovable properties worth Rs 1,500 crore). It included his shares holding in United Breweries (UB) and United Spirits Ltd (USL) —-which was earlier managed by him.

[edit] Loan disbursement by IDBI

Vijay Mallya's holiday meeting with IDBI bank's ex-CMD led to hasty sanction of Rs 350 crore loan: ED, Jan 29, 2017, The Times of India

HIghlights

IDBI bank hastily disbursed loan to Kingfisher Airlines after a "holiday" meeting between liquor baron Vijay Mallya and the then bank CMD

The total loan sanctioned and disbursed by IDBI was Rs 860.92 crore


Two initial tranches of loan worth Rs 350 crore were hastily disbursed by IDBI bank to Kingfisher Airlines after a "holiday" meeting between liquor baron Vijay Mallya and the then bank CMD as both organisations "criminally conspired" to clear the entire deal despite weak financials of the airline, the ED has said.

The total loan sanctioned and disbursed by IDBI was Rs 860.92 crore.

The agency, probing the case for money laundering charges, has said its investigation found that the processes deployed to structure and re-structure the loan by the bank to the now-defunct airline was planned to be defrauded and that Mallya and Kingfisher Airlines (KFA) had "no intent" to repay it.

"PMLA investigation indicates that the marketable value and quality of the collateral security offered by Ms KAL (KFA) and its promoters was not assessed. There is a complete lack of due diligence on the part of the bank coupled with the fact that undue haste was shown while disbursing the initial two tranches of loan amounting to Rs 350 crore.

"It is apparent that the said loans were disbursed post meeting of Mallya with the then CMD (Yogesh Aggarwal) of the bank on a holiday. It does not need an eagles' eye to decipher the cause of immediate disbursement of the loan amount of Rs 150 crore on October 7, 2009 and Rs 200 crore on November 4, 2009," the Enforcement Directorate (ED) probe report, accessed by PTI, said.

The report added this specific transaction, where "substantial amounts" were sanctioned to KFA, in an ad-hoc basis and without due diligence points to the "existence of a deep rooted criminal conspiracy between the bank officials and the promoters of KAL (KFA)".


The agency, in its report, has appended the statement of the Aggarwal given to ED on March 23 last year wherein he told the Investigating Officer (IO) of the case that in October 2009, Mallya made a telephonic call to his office and requested for an "urgent meeting the very next day".


"As the next day was a holiday, it was pointed out to him ... and he could meet at a later day. However, he (Mallya) informed that he was leaving Mumbai next day evening and as the matter was urgent, he would be grateful if he could meet the next day despite it being a holiday to which he (Aggarwal) agreed," the ex-CMD said, adding Mallya did meet him the next day along with a former MD and current advisor of the bank and an Executive Director of IDBI.

"Mallya informed that Ms KAL (KFA) was in a severe crunch and needed funds urgently to keep flying," Aggarwal said in his statement.

[edit] Recovering bank loans

[edit] June 2016: 2 properties sold before ED attachment

The Times of India, Jun 13 2016

Neeraj Chauhan

Mallya quietly sold off 2 properties before ED attached Rs 1,411cr assets

Why did the Enforcement Directorate (ED) rush to attach Vijay Mallya's properties worth Rs 1,411 crore in a single day? The liquor baron, who is in London, sold off two properties worth several crores before the agency could attach them on Saturday , top sources told TOI. One of the properties sold Probe biased: Mallya, P11 by Mallya is located in Coorg, while the other is close by, though officials refused to share details. The ED is trying to find out whether Mallya received money from the sales and if it has been remitted to him or his firms aboad. The agency obtained details of sale during its investigation and this will find mention in its complaint to the adjudicating authority within a month.

After learning that Mallya is quietly disposing as sets in India to avoid their seizure by banks and investigation agencies, the ED swiftly approached a court on Friday and got the liquor baron declared a `proclaimed offender'. It then went ahead with provisional attachment of properties under the Prevention of Money Laundering Act (PMLA) on Saturday .

Sources said they had information about Mallya, who left for London on March 2, disposing assets so that the provisional attachment action could be “frustrated“.Officials termed Mallya's act “illegal“. “Indulging in such activities by Mallya clearly indicates he has no intention to repay bank loans or come back to India,“ an officer said.

Responding to TOI in an email from London, Mallya said the ED attached his properties and assets of United Breweries Holdings Limited (UBHL), which was a public company and not even the subject of an ED investigation. “The assets purportedly attached under PMLA date back to several years prior to the launch of Kingfisher Airlines. There is no rationale nor any legal basis for the series of actions initiated by the ED which is now making it more difficult to raise resources to pay the banks. Purely civil matters such as loan recovery are being connected with criminal allegations without any basis whatsoever.“

[edit] Property seized by ED: 6,630cr

The Times of India, Sep 04 2016

ED attaches fugitive Mallya's properties worth Rs 6,630cr

The Enforcement Directorate has attached additional assets worth Rs 6,630 crore belonging to Vijay Mallya and his defunct Kingfisher Airlines, taking the total value of attached properties of the fugitive businessman to over Rs 8,000 crore.

Mallya had fled to London earlier in 2016 after the ED and CBI asked him to join investigations. He was wanted by the agencies in a case of defaulting on loans to the tune of Rs 9,000 crore taken from half a dozen government banks and laundering a part of this money to his shell companies abroad.

The present attachments are based on an SBI case filed with CBI. The ED had later filed a case under the Pre vention of Money Laundering Act (PMLA) and attached properties.

An ED probe revealed that Mallya had deliberately kept shares worth Rs 3,600 crore ­­ pledged with UTI Investment Advisory Services Ltd and other financial institutions without substantial underlying liabilities ­­ hidden from a consortium of banks from which he had borrowed. His total outstanding principal amount with the consortium remains over Rs 4,900 crore.

According to ED, its inves tigation has revealed that Mallya had laundered more than Rs 3,500 crore out of the loan outside India on the pretext of payment of lease rentals, repairs, maintenance and so on.Mallya and his officials failed to provide any proof of lease agreements to the probe team.Irregularities were also detected in other major payments.

“Investigation revealed that Mallya created a complex web of shell or investment companies in the name of his family members and employees with dummy di rectors. These companies neither have business activities nor independent source of income, but hold substantial movable and immovable properties,“ ED said.

“He has not disclosed in full his properties in India and overseas, as well as his interests in these companies being controlled directly or indirectly by him,“ the agency said. There were substantial movable properties such as the shares of various public limited companies held by Mallya and his UB Holdings.

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