BackED questions 2 key UB Group officials over Vijay Mallya’s money laundering case
The summons to Mallya were sent on Friday and were part of the ED's probe into alleged instances of money laundering
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Mumbai: The Enforcement Directorate (ED) on Saturday questioned two key UB Group officials as a part of its probe into a money laundering case against former liquor baron Vijay Mallya.
According to a senior ED official, the agency has started second round of questioning of UB Group executives including Ravi Nedungadi, president and chief financial officer at UB Group and A. Raghunathan, chief financial officer (CFO) of Kingfisher Airlines Ltd, the grounded airline promoted by UB Group.
Raghunathan was questioned on Friday as well.
“We are questioning the executives for the second round. We have summoned UB Group chairman Vijay Mallya to be personally present on 18 March," the ED official said. However, Mallya is yet to respond to the summons, he admitted.
The summons to Mallya were sent on Friday and were part of the ED’s probe into alleged instances of money laundering.
Meanwhile, the agency has started examining all transactions between defunct Kingfisher Airlines and IDBI Bank Ltd. On Monday, the agency registered a case under the Prevention of Money Laundering Act to trace the diversion of the ₹ 950 crore in loans granted to the airline by the bank.
Since August 2014, the Central Bureau of Investigation (CBI) has been probing the alleged collusion between the airline and a few bank officials in granting loans to the airline despite its negative credit ratings and net worth.
ED is mandated with the task of enforcing the provisions of two special fiscal laws—Foreign Exchange Management Act, 1999, and Prevention of Money Laundering Act, 2002.
A UB Group spokesperson declined to comment.
Meanwhile, the capital market regulator has sent a notice to United Spirits Ltd (USL) seeking an explanation for not informing its Indian shareholders about the $75 million deal that led to the exit of its chairman Mallya.
The Securities and Exchange Board of India (Sebi) is examining suspected violations of corporate governance and insider trading norms and possible price manipulation ahead of the deal, Mint reported on Saturday citing two persons familiar with the development.
Another investigative agency, the Serious Fraud Investigation Office (SFIO), has also directed Mallya and other directors to appear for questioning in the next fifteen days.
“After the initial examination of Kingfisher Airlines book of accounts we have observed serious irregularities. It has come to our notice that Kingfisher Airlines may have not only diverted bank loans but could have also taken loans from some public listed companies," said a ministry official, requesting anonymity. The official added that SFIO aims to file a chargesheet in the case in the next one month.
the SFIO is a multi-disciplinary organization under ministry of corporate affairs, for detecting and prosecuting or recommending for prosecution white-collar crimes and frauds.
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