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Vijay Mallya in UK: More evidence submitted in case against former liquor baron

Vijay Mallya in UK: More evidence submitted in case against former liquor baron

A Joint team of ED and the CBI has reached London to brief UK prosecution on the extradition of absconding Vijay Mallya.

A Joint team of the Enforcement Directorate (ED) and the CBI has reached London to brief UK prosecution on the extradition of absconding beer baron Vijay Mallya, and submit fresh proof in the case, officials disclosed on Wednesday.

The visiting officials of the two central probe agencies will also submit the charge-sheet filed by the ED in the case in Mumbai last month, said a senior official. The Indian investigators will brief Crown Prosecution Service (CPS) officials on the contents of the ED charge-sheet and the evidence incorporated in it. Other legal issues related to the matter are also expected to be thrashed out.

The CPS will argue the case in the court on behalf of the Indian government. The ED's legal advisor will explain in detail the charges made out against Mallya, more evidence and other legal points mentioned in the charge-sheet filed under various sections of the Prevention of Money Laundering Act (PMLA), the official said. The ED will also seek cooperation from countries like France, Singapore, Mauritius, Ireland, the US and the UAE to probe certain transactions and the shell companies involved.

Nine accused have been named in the charge-sheet filed by the ED. The list includes 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 has called Mallya prime mover of the entire plot in the chargesheet and described how funds obtained from the bank loan were allegedly routed illegally, including substantial payments being diverted to the Formula-1 car racing event abroad. Mallya, who is wanted in India for Kingfisher Airlines' default on loans worth nearly Rs 9,000 crore, has been in the UK since March 2016 was arrested by Scotland Yard on an extradition warrant on April 18.

However, he is out on bail now and living in his country mansion near London. Mallya is still living the high life and surfaces for various sporting events in UK such as the horse races at Ascot and car races connected with his Formula 1 team. A United Kingdom court recently scheduled the hearing for Mallya's extradition case for December 4. Both the ED and the Central Bureau of Investigation (CBI) are probing Mallya and others for alleged charges of corruption and money laundering. In another setback for Mallya, liquor giant Diageo has decided to hold back USD 35-million out of the total USD 75 million that the company had agreed to pay him in a sweetheart deal to exit United Spirits. Diageo, the world's largest liquor company, is instead seeking to recover dues from Mallya, including USD 135 million given as conditional guarantee to Standard Chartered Bank. Diageo also intends claim Mallya's stake in the Force India Formula One team, which was pledged as security for Watson.

The British company found various financial misappropriations and fund diversion by Mallya. Vijay Mallya received USD 40 million last year from Diageo after he agreed to walk away from United Spirits. The balance was to be paid by Diageo in two equal instalments. When Diageo acquired control of USL in 2012, it issued a guarantee to Standard Chartered against Watson's debt to release USL stock that was to be acquired as part of the deal. Vijay Mallya has remained out of the country even after being asked to appear for questioning for diversion of loans that have not been repaid after the Kingfisher Airlines failure.

Published on: Jul 20, 2017, 12:27 PM IST
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