The Enforcement Directorate on Friday moved a court trying cases under the Prevention of Money Laundering Act for a non-bailable warrant and Red Corner notice against Vijay Mallya.
Hiten Venegavkar, advocate for the ED, said Mr. Mallya was summoned thrice by the agency to record his statement but he failed to appear.
The first summons was issued in the first week of March asking Mr. Mallya to appear on March 18. However, he sought time. The agency issued the second summons and asked him to appear on April 2. He again did not turn up.
The third summons was issued on April 9. As he failed to appear, the ED was moving the court for a non-bailable warrant.
The ED’s case is based on the FIR registered by the CBI against Mr. Mallya and other unknown officials of the Mumbai-based IDBI for causing a loss of Rs. 900 crore to the public sector bank. An agency source said the IDBI gave the loan despite the negative credit ratings and financial troubles of the now defunct Kingfisher Airlines.
The FIR was registered under sections pertaining to criminal conspiracy, criminal breach of trust by a public servant or a banker, merchant or agent, and criminal misconduct by a public servant. The ED has registered a case under the Prevention of Money Laundering Act to trace the alleged diversion of the Rs.950 crore loan granted to Kingfisher Airlines by the bank.
The agency is probing why the bank gave the loan to the airline, ignoring its own internal report that had allegedly warned against such a step. The matter is adjourned for April 16.
