Following the hullaballoo over the arrest and subsequent release of Vijay Mallya, an analysis by Moneycontrol has revealed how the liquor baron managed to transfer 40 million dollars to his children — Siddharth Mallya, Leena Mallya and Tanya Mallya . This 40 million dollar amount was reportedly given to senior Mallya by London-based alcohol firm Diageo Plc after he stepped down from the position of chairman of United Spirits Ltd, which happens to be a subsidiary company under Diageo, Moneycontrol reported.
The ED alleged that Mallya did so with the intent of ensuring that the money doesn’t reach India.
Another aspect that the analysis revealed was the laundering of money amounting to over Rs 3,200 crore overseas by Mallya. This money was largely given as loans to the now – defunct Kingfisher Airlines from various banks.
This channeling of funds, which were apparently used to meet “the airline’s operational expenses” or “lease rentals”, were not backed by the relevant documents, as per the report, citing sources and analysing data of the Enforcement Directorate (ED).
Despite repeated reminders, the company (KFA), has failed to submit supporting documents such as lease agreements to show that the payments were bonafide. It is clear that the bank loan obtained, have been siphoned-off abroad under the ruse of lease payments, in a calculated pre-designed manner.A source quoted by Moneycontrol
The Rs 3,200 crore included loans from banks such as State Bank of India, Punjab National Bank and Axis Bank.
Meanwhile, the ED has also red-flagged the Rs 950 crore loan given to airlines by the IDBI Bank, especially raising the issue of the bank not carrying out due diligence when giving out the loan.
Mallya, who had left India in March last year, has been sought by the Indian authorities for loan default as well as money laundering.
He was arrested by the Scotland Yard on Tuesday, and was subsequently let off on bail after being produced at the Westminster Magistrates’ Court.
(Source: Moneycontrol)
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