Non-bailable warrant issued against Vijay Mallya

The Prevention of Money Laundering Act (PMLA) court on Monday issued a non-bailable warrant against Vijay Mallya.

Judge P.R. Bhavake was hearing a plea filed by the Enforcement Directorate (ED) seeking for a non bailable warrant against Indian businessman Vijay Mallya.

Senior Counsel Amit Desai appearing for Kingfisher Airlines said the financial audit of the company was carried out in 2009 and 2010 which has mentioned the exact momentum and purpose of the loan was known and said all the allegations made by ED are false.

Advocate Hiten Venegavkar, representing the Enforcement Directorate said that Mr. Mallya was summoned thrice by the agency to record his statement but he repeatedly failed to appear hence they are seeking warrant against him.

The ED’s case is based on the FIR registered by Central Bureau of Investigation (CBI) against Mr Mallya and other unknown officials of Mumbai-based IDBI for causing a loss of Rs. 900 crore to the public sector bank. An agency source said IDBI gave the loan despite Kingfisher Airlines’ negative credit ratings and financial troubles.

The FIR was registered under sections pertaining to criminal conspiracy, criminal breach of trust by a public servant or a banker, merchant or agent, and criminal misconduct by a public servant.

The ED has registered a case under the Prevention of Money Laundering Act to trace the alleged diversion of the Rs. 950 crore loan granted to Kingfisher airline by a bank. The agency is probing why the bank gave the loan to the airline, ignoring its own internal report that had allegedly warned against such a step.