Mallya diverted Rs 3,700 cr bank loan to F1, IPL: ED

TIL Desk/Business/New Delhi/ The Enforcement Directorate on Monday charged embattled liquor baron Vijay Mallya and his two firms for fraudulently “diverting” over Rs 3,700 crore bank loan funds to a UK-based F1 motorsport firm, a T20 IPL team, and for enjoying private jet sorties. The ED’s fresh chargesheet against Mallya and his firms is likely to pave the way for him to be declared “fugitive” under a new Indian law.

The agency named Mallya and his firms – Kingfisher Airlines Limited and United Breweries (United Breweries Holdings Limited) – in its voluminous prosecution complaint filed before a special Mumbai court under the Prevention of Money Laundering Act.

The chargesheet revolves around a complaint received from State Bank of India on behalf of the consortium of banks for causing loss of Rs 6,027 crore to them by not keeping repayment commitments of the loans taken during 2005-10, officials said. The ED had filed an FIR in the case in August, 2016 after going through a CBI FIR.

“The SBI, which is the consortium leader, has calculated the amount (of the loan) to the tune of Rs 9,990.07 crore (including applied interest) as on May 15, 2018,” the agency said in the chargesheet.