Former liquor baron Vijay Mallya has used a portion of the Rs 950 crore that he owes to IDBI bank to buy a property abroad, a special court was informed on Saturday. The court was hearing the ED's plea seeking a non-bailable warrant against the businessman. It will announce its verdict on April 18.
The Enforcement Directorate, which is probing money laundering allegations against the 60-year-old, told the court that Mallya showed Rs 430 crore of the IDBI loan as expenditure on aircraft lease rent, import of spare parts and aircraft maintenance services.
"We have stumbled upon the money trail and found that of the money he borrowed, a portion had been used to buy a property outside India,” ED counsel Hiten Venegaonkar said, according to Hindustan Times. The probe agency has also identified the recipients of the money along with their bank details. Venegaonkar told the court that Mallya made payments to companies unrelated to his business. He had loaned the money for his now-defunct Kingfisher Airlines. Mallya left the country in March.
On Friday, Mallya's passport was suspended by the central government for four weeks on the recommendation of the ED. Earlier, he had refused to present himself before the probe agency three times in connection with the case. Mallya, who is currently in the United Kingdom, had sought time till May to be questioned. Mallya had left the country in March still owing 17 banks in India around Rs 9,000 crore.