JOIN USED to expand probe in Mallya loan default case
Taking forward the probe against Vijay Mallya, the Enforcement Directorate (ED) has asked the CBI to provide the fresh FIR it registered against the liquor baron in connection with loan default.
The ED, which is investigating a money laundering case on the basis of the first CBI FIR against Mallya for IDBI loan default, has decided to expand its probe after the registration of the fresh case.
According to officials, the ED will study the content of the fresh FIR, under sections of criminal conspiracy and cheating for not honouring his commitment to repay a Rs 6,027 crore loan availed by Mallya-owned Kingfisher Airlines during 2005-10 from a consortium of banks.
The complaint was filed by the State Bank of India on behalf of the consortium. It is also looking into other documents and details obtained from the CBI. The ED is expected to act on the fresh information soon.
The State Bank of India and others had advanced various credit facilities to Kingfisher Airlines during 2005 and 2010 but the airline failed to honour the commitments in 2009-10.
According to the CBI FIR, Kingfisher Airlines did not keep its account with the consortium banks and it became a Non-Performing Asset (NPA). The consortium then recalled credit facilities and also invoked corporate guarantee of United Breweries (Holdings) Limited and personal guarantee of Mallya.
According to the information provided to a parliamentary panel, Mallya owed Rs 9,431.65 crore to 13 banks as on February 29. He owed Rs 2,350.34 crore to SBI, Rs 1,687 crore to JM Financial ARC, Rs 1,223.62 crore to IDBI and Rs 1,119.71 crore to Punjab National Bank. He owed another Rs 236.15 crore to SBM.