Not so good times for the king, the Enforcement Directorate has registered a case under the Prevention of Money Laundering Act, against Vijay Mallya and top executives of now-defunct Kingfisher Airlines in a bank fraud case. Naming 7 people, including Mallya, the ED case is based on a CBI case registered against Mallya and others in a bank fraud case.
Just recently, the State Bank of India had approached the Debt Recovery Tribunal seeking arrest of Mallya in a bid to recover loans to Kingfisher Airlines which was promoted by the liquor baron. Mallya said he was making efforts to reach a “one-time settlement” with banks through additional payments to the lenders. Rejecting all allegations that he is an “absconder”, he said he would continue to cooperate with investigative agencies related to the loans provided by banks to Kingfisher Airlines. Mallya also insisted that he was not a “borrower of a judgement defaulter” and he has challenged the “willful defaulter” tag by some banks, which he alleged didn't go after borrowers who “owe much more than the amount allegedly owed by Kingfisher Airlines.”
He also alleged that SBI, which has dragged him to Debt Recovery Tribunal seeking his arrest and seizure of his passport to claim his £51.50 million deal to exit United Spirits, was aware of the financial stress Kingfisher Airlines was under, for a long time.
