CBI, ED to close in on Mallya

In a massive development in the Mallya case, top sources told Republic TV that a joint ED and CBI team is in the midst of providing fresh evidence to the U.K. prosecution. The Central agencies have been investigating the allegation of money laundering against Vijay Mallya. Mallya has also been booked for defaulting on loans that were taken from a consortium of banks.

Not too long ago, Mallya appeared before a UK Court for a hearing on his extradition case. 

WATCH | 'Keep Dreaming About The Billions', Says Mallya

ED moves on Mallya

The CBI and ED — which have been probing the case —  alleged that Kingfisher Airlines was incurring losses from its inception and the net losses of the company were Rs 687 crore in March 2008 and Rs 2,168 crore in March 2009.

By the year 2009, Kingfisher had already availed loans close to Rs 5,000 crore from various banks under multiple banking arrangements and he was in further need of a loan of Rs 2,500 crore, of which Rs 2,000 crore was sanctioned by a consortium of banks.

The agency alleged that Mallya owns several properties outside of India, in the UAE and the US. He has also incorporated several companies in the US, where the funds also have been suspected to have been diverted. The complaint also accused Mallya of colluding with five IDBI Bank officials to secure funds without any valuable collateral and alleged that the bank approved the loan to Kingfisher Airlines despite its weak financials, low credit rating and negative net worth.

The agency has sought the bank account details and also the details of the companies with which Mallya has exchanged transactions in the other four countries.

'Rs 9,000 crore to 17 lenders'

According to media reports, Kingfisher owes over Rs 9,000 crore to 17 lenders, including the SBI, IDBI Bank, Punjab National Bank, Bank of India, Bank of Baroda, United Bank of India, Central Bank, UCO Bank, Corporation Bank, Indian Overseas Bank, Federal Bank, Punjab and Sind Bank, and Axis Bank among others.