NEW DELHI: The Enforcement Directorate (ED) attached properties worth Rs 1,411 crore of business tycoon Vijay Mallya and his company United Breweries (Holding) Ltd on Saturday in connection with an alleged money laundering case against him. The agency has attached as part of probe into the alleged Rs 900 crore IDBI Bank loan default case.
“The provisional attachment includes bank balance of Rs 34 crore , one flat in Banguluru and Mumbai -- 2291 and 1300 sqft respectively each, Industrial plot in Chennai which is 4.5 acres, coffee plantation land in Coorg which is 28.75 acres, and residential and commercial constructed area in UB CITY and Kingfisher Tower in Banguluru which is 840279 sqft,” said a senior ED officer
Following the criminal case registered by Central Bureau of Investigation on July 29, 2015 against Mallya and Kingfisher Airlines Ltd and unknown officers of IDBI and others, ED registered a case of money laundering January 25, 2016 under Prevention of Money Laundering Act.
The officer said that during investigation under PMLA it was that loan amounting to Rs 864 crore was sanctioned to Kingfisher Airlines Ltd against collateral security of Kingfisher Brand, corporate guarantee of UBHL and personal guarantee of Vijay Mallya out of which Rs 807 Crores remained unpaid.
“Mallya has held a number of movable and immovable properties in India as well as outside India through his various companies established by him through his office personnel and which were directly or indirectly controlled by him,” he said.
The agency stated that despite numerous opportunities given to Mallya to appear before them to record his statement, he opted not to co-operate with investigation and hence his passport was revoked by Ministry of External Affairs and Special PMLA court has issued non-bailable Warrant against him.
“During investigation it is also revealed that some of the properties are being disposed off by the accused, therefore to ensure that further proceedings under PMLA may not be frustrated, properties equivalent to proceed of crime of Rs 807 crores having present market value of Rs 1411 crores have been provisionally attached,” the officer stated.
He further said that the corporate loan was sanctioned and disbursed despite weak financials, negative net-worth, low credit rating of the borrower company and despite the fact that the company being a new client did not satisfy the norms stipulated in the corporate loan policy of the bank.
Investigation indicates that Kingfisher Airlines Ltd and its officials conspired among themselves and got sanctioned and disbursed term loans without conducting due diligence and Kingfisher Airlines Ltd had diverted the said funds. “The loan was sanctioned in an extraordinary haste without verifying quality and value of the said security independently and subsequently to avoid payment of dues, corporate guarantee and personal guarantee rendered by UBHL and Mallya were challenged by them before Bombay High Court on the grounds of coercion and undue pressure. It emerged during the investigation that from very beginning Kingfisher Airlines Ltd defaulted in repayment of loan thereby putting the IDBI Bank to a wrongful loss.
During probe, the agency also found that the acts of Mallya, UBHL and others indicate that a criminal conspiracy was hatched for sanctioning of bank loan to Kingfisher Airlines Ltd in gross violations of established procedure. “Kingfisher Airlines Ltd had no intent for repayment of loan ab initio. Further, huge funds -- approx. 423 crores -- out of these loans were remitted outside India on pretext of aircraft lease rentals but no supporting documents furnished so far to substantiate their bonafides,” the officer said.
The agency further pointed out that not only the said bank loan was obtained in questionable manner, but part of the loan has been siphoned off abroad in a calculated and pre designed manner.
Total outstanding principal loan amount of IDBI is Rs 807 crores is proceeds of crime generated out of criminal activities as defined under PMLA.