CBI, Enforcement Directorate tell UK that Vijay Mallya plotted criminal conspiracy

NEW DELHI: A joint team of CBI and Enforcement Directorate, seeking extradition of Vijay Mallya, has informed the Crown Prosecution Service (CPS) of UK that the former liquor baron laundered money taken on loan from state-owned banks as part of a "criminal conspiracy".

According to the sources, CPS, which will argue on May 17 on why Mallya should be extradited to India, had asked for "strong points" of argument and the joint team of officials from CBI and ED briefed it last week. The Indian officers briefed them how Mallya first convinced the banks that he was taking loan for the operations of Kingfisher Airlines, a budget carrier that he owned.

Lawyers of CPS were informed that Mallya had connived with Yogesh Aggarwal, the then chairman of IDBI Bank which extended a loan of Rs 900 crore to the airline which was already debt-ridden. The total outstanding loan with interest stands at Rs 9000 crore.

Officials also explained to CPS how Mallya diverted the money to either shell companies in India or abroad, said sources. Details of places where money was laundered, including companies/accounts in the UK, have already been shared. Asked by CPS lawyers, Indian officials said they could rely on the statements given by several people, including bank officials and employees of now defunct Kingfisher Airlines, while arguing for Mallya's extradition.

Another strong point which Indian officials explained to CPS lawyers was Mallya's escape to London on March 2 last year just as when criminal investigation were initiated against him on the complaints of banks. Mallya fled to London after selling stakes in his companies, which was pointed out by the Indian officials as "part of criminal conspiracy" and showed there was "no intention" to repay the loans.

The CBI and ED officials also said Mallya's contentions have been turned down even by the Supreme Court. They said Indian courts have issued nonbailable warrants against Mallya after examining the "strong evidence" against him. Mallya's extradition proceedings will be heard by senior district judge Emma Arbuthnot at 81 Marylebone Road, London on May 17.