CBI Claims Vijay Mallya Purchased Properties Worth ₹330 Crore During Airline Turmoil
CBI Claims Vijay Mallya Purchased Properties Worth ₹330 Crore During Airline Turmoil

CBI Claims Vijay Mallya Purchased Properties Worth ₹330 Crore During Airline Turmoil

According to a supplementary chargesheet filed by the Central Bureau of Investigation (CBI), Vijay Mallya, a beleaguered businessman and accused in the alleged ₹ 900 crore IDBI Bank-Kingfisher Airlines loan fraud case.

Vijay Mallya purchased properties worth ₹ 330 crore in England and France during 2015-16, even as his airline company was facing financial difficulties and banks had not yet recovered the loans that Mallya had defaulted on.

The Central Bureau of Investigation (CBI) has alleged that Buddhadev Dasgupta, a former general manager at IDBI Bank, misused his official authority and colluded with Vijay Mallya and other IDBI Bank officials to approve and distribute a short-term loan of ₹150 crore in October 2009.

CBI Claims Vijay Mallya Purchased Properties Worth ₹330 Crore During Airline Turmoil
source : mint.com

The chargesheet alleges that the loan was treated as a separate loan, which could be adjusted or recovered from the aggregate loan of ₹ 750 crore sought by the airline company, resulting in the exposure of IDBI Bank increasing to ₹ 900 crore in December 2009. The CBI has sent letters rogatory to several countries, seeking assistance from their courts in the investigation.

According to the chargesheet Vijay Mallya purchased properties worth ₹330 crore in England and France during 2015-16 despite his Kingfisher Airlines facing financial difficulties and banks not having recovered loans defaulted by Mallya.

The CBI also claimed that Mallya had adequate funds between 2008 and 2016-17, but none of it was used to support the airlines as equity infusion or to fulfill his obligations as a personal guarantor for the loans taken by Kingfisher Airlines.

CBI showcased unnoticed economic activities of Vijay Mallya

The chargesheet stated that significant amounts were transferred to Force India Formula 1 Team and diverted from 2007 to 2012-13 to repay loans for a corporate jet used personally by Mallya. The Enforcement Directorate (ED) is also investigating a money laundering case against Mallya, and he has been declared a fugitive by a special court in Mumbai under the Fugitive Economic Offenders Act.

Kingfisher Airlines was a private airline company based in India that operated from 2005 to 2012. It was founded by the Indian businessman Vijay Mallya, who was also a well-known liquor baron. Kingfisher Airlines was known for its luxurious services and was considered a premium airline in India.

However, the airline faced severe financial difficulties and had to shut down its operations in 2012. The airline’s failure was attributed to a combination of factors, including high operating costs, a competitive market, and mismanagement.

Vijay Mallya, who is currently in the UK, has been declared a fugitive economic offender by an Indian court and is facing extradition proceedings. He is wanted in India for charges of fraud and money laundering in connection with the collapse of Kingfisher Airlines.

If he is extradited to India and found guilty, he could face imprisonment and fines. However, the extradition process has been delayed due to various legal challenges and appeals.

Comments

comments