Money laundering case: Enforcement Directorate likely to grant Vijay Mallya extension

NEW DELHI: The Enforcement Directorate (ED), which is investigating money laundering charges against Vijay Mallya, is likely to grant the businessman an extension after "studying the reply and reasons" cited by him. ED had summoned him for a "personal appearance" on March 18 under the provisions of the Prevention of Money Laundering Act (PMLA). Mallya sought time until April on Thursday.

ED recently registered a money laundering case against Mallya and others based on a first information report filed by the Central Bureau of Investigation (CBI) last year. ED is also investigating the overall financial structure of the grounded, Mallya-promoted Kingfisher Airlines and will look into accusations of kickbacks to return for loans. The agency is looking into any possible "proceeds of crime" that would have been generated using the slush funds of the alleged loan fraud.

It is also looking into whether some of this money was sent abroad illegally. The agency has also written to the 17-bank group led by State Bank of India that lent money to the grounded airline and then moved the debt recovery tribunal (DRT) to get back the money, pegged now at more thanRs 9,000 crore.

ED has also sent official requests seeking details of investigations conducted by the income tax and service tax departments and the Serious Fraud Investigation Office (SFIO) against the airline in the past.