Ashish Ranjan
In its supplementary chargesheet lodged in a Mumbai court, the Central Bureau of Investigation (CBI) asserts that fugitive businessman Vijay Mallya purchased properties worth Rs 330 crore in England and France during 2015-16, while his Kingfisher Airlines faced a cash crunch at the same time.
According to the CBI charge document, at the same time, banks had not recouped the loans defaulted by the liquor baron.CBI stated in the chargesheet that Mallya had sufficient funds between 2008 and 2017 to repay the institutions from which he had obtained loans for Kingfisher Airlines Limited. (KAL).
However, he purchased “personal assets” throughout Europe and transferred funds to the trusts of his offspring in Switzerland.After receiving permission from the court, the CBI sent a communication to multiple countries requesting Mallya’s transaction details.
The agency learned that Mallya had purchased real estate in France for 35 million euros and had attempted to withdraw 8 million euros from an account of one of his companies, Gizmo Holdings.Mallya reportedly fled India in 2016 and is currently residing in the United Kingdom, despite efforts to extradite him for trial.
The CBI is investigating an alleged Rs 900 crore IDBI Bank-Kingfisher Airlines loan fraud involving Mallya.In its most recent supplementary chargesheet, the investigation agency has added the name of Buddhadev Dasgupta, the former general manager of IDBI Bank, to the 11 defendants previously charged.
CBI CHARGESHEET AGAINST VIJAY MALLYA
According to the CBI, Dasgupta allegedly abused his official position and conspired with IDBI Bank officers and Vijay Mallya in October 2009 regarding the sanction and disbursement of a Rs 150 crore short-term loan (STL).
The aforementioned loan of Rs 150 crore, as originally envisioned by Dasgupta (via a proposition circulated among credit committee members), was to be deducted from the total loan amount of Rs 750 crore initially requested by the airlines.
However, following distribution, the proposal was altered to reflect that the credit committee had regarded this as a separate loan, which may (or may not) be adjusted/recouped from the total loan.
The chargesheet stated that IDBI Bank’s exposure was to be limited to a total of Rs 750 crore, but it increased to Rs 900 crore in December 2009 because the STL of Rs 150 crore was kept as a separate loan, primarily at Dasgupta’s urging.As permitted by the CBI court, letters of rogatory (LRs) were sent during the investigation to the United Kingdom, Mauritius, the United States, and Switzerland.
By means of letters or rogatory, the courts of one nation request the assistance of the courts of another nation in the administration of justice there. The indictment mentioned the evidence gathered during an international investigation in these nations.
“The properties in the United Kingdom (Ladywalk in 2015-16 for GBP 12-13 million or approximately Rs 80 crore) and France (‘Le Grand Jardin’ in 2008 for Euro 35 million or approximately Rs 250 crore) were acquired by Mallya at a time when Kingfisher Airlines was facing a severe cash crunch”
The chargesheet claimed that Mallya had adequate funds available between 2008 and 2016-17, but none of them were used to support the airlines as equity infusion or to fulfil his obligations as a personal guarantor for KAL’s loans from IDBI and other institutions in India.
Between 2008 and 2012, significant sums were transmitted to the Force India Formula 1 Team, according to the indictment, which cites evidence gathered through LRs.According to the indictment, substantial funds were diverted between 2007 and 2012-2013 to pay for the acquisition and repayment of a loan for the corporate aircraft that Mallya used for personal travel.
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In addition to the CBI, the Enforcement Directorate (ED) is investigating Mallya for money laundering.A special court in Mumbai declared Mallya a fugitive on January 5, 2019.The prosecuting agency has the authority to seize the property of a fugitive economic offender under the provisions of the Fugitive Economic Offenders Act.
