The Enforcement Directorate on Wednesday sought the cooperation of the State Bank of India-led consortium of banks, to which Vijay Mallya’s now-defunct Kingfisher Airlines owes over Rs. 9,000 crore, in speeding up the attachment of his assets in the money laundering case.
The ED and the CBI have also urged the banks to lodge criminal complaints for alleged wilful default.
The ED can currently attach assets worth only Rs. 900 crore in connection with the IDBI loan case registered by the CBI.
According to sources, the financial investigating agency has arrived at an arrangement with the banks on the issue of properties to be attached under the Prevention of Money Laundering Act. As part of the understanding, the Directorate will not touch the assets identified by the lending banks for auctioning to recover the debt.
Last month, a consortium of 17 banks rejected two offers of partial repayment by Mr. Mallya. In the Supreme Court, Mr. Mallya initially agreed to make a part payment of Rs. 4,000 crore and then had scaled it up to Rs. 6,868 crore.
Extradition proceedings
After the U.K. authorities turned down India’s request for Mr. Mallya’s deportation on technical grounds, the ED has sought the issuance of an Interpol Red Notice against him to restrict his movement. The agency is also preparing to lodge a formal request with the Ministry of External Affairs to initiate extradition proceedings against him.
Letters Rogatory (judicial requests seeking information) will soon be despatched through a court to the U.S., Switzerland, France, South Africa, Ireland, Mauritius and Hong Kong to gather details of the overseas assets and transactions related to Mr. Mallya and Kingfisher Airlines. “Most of the India-based properties have been identified,” said an official.
