Money laundering and allegedly cheating a consortium of nationalised banks to the tune of Rs 6,027 crore, With this chargesheet (also known as the prosecution complaint), official sources told PTI, the central probe agency will immediately seek from a court permission to “confiscate” more than Rs 9,000 crore worth assets of the beleaguered businessman and his firms under the recently promulgated Fugitive Economic Offenders Ordinance.
The ED last year had filed its first charge sheet against Mallya, now in London, in the Rs 900 crore IDBI bank-Kingfisher Airlines (KFA) alleged bank loan fraud case. It has attached assets worth Rs 9,890 crore in this case till now.
The forthcoming chargesheet will revolve around the complaint received from the State Bank of India (SBI) on behalf of the consortium of banks for causing loss of Rs 6,027 crore to them by not keeping repayment commitments of his loan (by Mallya firms) taken during 2005-10, they said.
The ED has based its investigation in this instance after taking cognisance of a CBI complaint and the charge sheet will be filed before a special court in Mumbai under the Prevention of Money Laundering Act Mallya is contesting these charges in London as part of India’s efforts to extradite him from there and face the legal system here in connection with these charges.
The central probe agency had recently begun the work to bring together the existing cases of high-value bank loan defaulters for getting them notified under the new legislation.
As per the existing process of law under the PMLA, the ED can confiscate assets only after trial in a case finishes which usually takes many years.
The Modi government brought the ordinance as “there have been instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings,” the government said.
The Fugitive Economic Offenders Bill, 2018 was introduced in the Lok Sabha on March 12 but couldn’t be taken up due to logjam in Parliament over different issues.
With Parliament being adjourned sine die, an ordinance was proposed.
The Union Cabinet on April 21 approved the ordinance and the President gave his assent to promulgation of the same a day later.