An investigation by Enforcement Directorate (ED) has revealed that promoters of Kingfisher Airlines, including absconding liquor baron Vijay Mallya and United Breweries Holdings Ltd (UBHL), showed no intention of repaying loans of the airlines despite possessing a significant amount of movable assets at their disposal, reports Economic Times (ET).
Both Mallya and UBHL together held shares of Rs 3,847.45 crore in various public limited companies of the group. However, banks could not attach these shares because Mallya had created a web of dummy and investment companies to shield these funds.
“These facts again indicate the intent of Vijay Mallya regarding non-payment of the dues to the consortium of banks. If he had the sincerity and willingness for repayment, he would have got possession of these shares and used these for repayment," said ED in its provisional order.
A Rs 9,000 Crore Question
Mallya has been accused of money laundering and bank-fraud cases have been filed against him by Indian authorities. Mallya is alleged to have siphoned off funds from the now defunct Kingfisher Airlines and defaulted on Rs 9,000 crore worth loans from banks. He is currently fighting an extradition case in the UK.
On 5 January 2019, absconding liquor baron Vijay Mallya became India’s first business tycoon to be declared as a fugitive economic offender under the NDA Government’s new Fugitive Economic Offenders Act (FEO Act).