ED registers money laundering case against Mallya, others

Mumbai: In fresh trouble for liquor baron Vijay Mallya, the Enforcement Directorate has registered a money laundering case against him and others in connection with the alleged default of over Rs 900 crore loan from IDBI bank.

Official sources said the agency recently filed charges under the Prevention of Money Laundering Act (PMLA) based on an FIR registered last year by CBI in the same case.


They said while the ED’s zonal office here has registered the case, sleuths are also looking at the overall financial structure of the now defunct Kingfisher airlines and a separate probe under foreign exchange violation charges could also be initiated.

“Mallya and others will soon be questioned. The agency has collected relevant documents from concerned authorities and the bank in question,” they said.

The ED has pressed charges under various sections of the PMLA against Mallya and others named in the CBI complaint.

The CBI had booked Mallya, director of Kingfisher Airlines, the company, A Raghunathan, Chief Financial Officer of the airlines, and unknown officials of IDBI Bank in its FIR alleging that the loan was sanctioned in violation of norms regarding credit limits.

The CBI action came as part of its wide probe into criminal aspects of loans declared to be non-performing assets by public sector banks.

The ED is looking into the “proceeds of crime” that would have been generated using the slush funds of the alleged loan fraud, they said.

While a DRT order is expected in this case today, ex-Kingfisher airlines employees have also gone public against Mallya and the company alleging they have been cheated of their remuneration and service benefits.

Mallya had yesterday said he is making efforts to reach a ‘one-time settlement’ with banks through additional payments to the lenders, even as he denied “personally” being a “borrower or judgement defaulter” and alleged that “disinformation campaign” was being played to make him a “poster boy” of all bad loans.

The debt-laden airlines had stopped operations in October 2012.


  1. Though this man is quite old today, he has had a playboy image and tossed money around and attracted beauties and had a life of fun and frolic, rather than being an astute businessman and capably running his business empire.

    He has screwed up King Fisher and not paid his employees’ salaries, but he has plenty of money to buy gold or gold-plated idol of god or goddess for a temple, splurge monies on his birthdays, throw lavish parties, buy classic or antique cars, finance and have his own cricket team, buying race horses and properties across the world. After all, one should not cheat or short-change poor people, whose curses from their hearts have handed him into deep shit. His troubles will only increase as days pass by, unless he pays off the banks, employees and others to whom he owes money.

    Now, where are the people and the beauties who were always flocking around him in good times and singing praises about him, the life he led and the parties he hosted? They can at least get together and contribute as per their mite and try to bale him off. Always people flock around personalities who throw lavish parties, soaked with lots of booze and when they fall through hard times, these people just jump off the sinking ship just like rats.

    Not only Vijay Mallya should be prosecuted, but the roles of the concerned banks’ officials should also be thoroughly investigated and they should be taken to task. It takes two to tango.

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