Vijay Mallya controversy puts investigative agencies in the dock

NEW DELHI: Investigative heat on Vijay Mallya went up by several degrees on Friday, with three premier agencies ratcheting up their efforts, even as there was fresh controversy over whether the tycoon, now abroad, could have been detained. Also, Mallya faces a March 18 deadline for personal appearance in India to answer questions from the Enforcement Directorate ( ED).

Central Bureau of Investigation ( CBI) officials told ET that early next week, it will ask India’s judicial authorities to issue letters rogatory (LRs) to UK officials. The investigating agency has, meanwhile, asked the Financial Intelligence Unit of the finance ministry for details of Mallya’s overseas transactions since the process to issue LRs is lengthy.

CBI suspects most of Mallya’s funds are parked in UK banks. ED sent an email to Mallya, giving him a deadline of March 18 for personal appearance to answer questions on disposal of loan money received from IDBI Bank.

The agency on Friday questioned senior IDBI officials and former Kingfisher Airlines staffers.

And officials of the Serious Fraud Investigation Office (SFIO) told ET they have found irregularities in the airlines’ books and that they also suspect funds were diverted from United Spirits, once owned by Mallya, to Kingfisher Airlines and other entities, in violation of company law. An SFIO report is likely to be submitted next month.

CBI investigators, who spoke on the condition they not be identified, told ET that LRs will also be sent to authorities in Singapore and Malaysia. These countries, investigators said, are likely destinations for the money diverted from IDBI’s loan to Kingfisher Airlines.