October 05, 2017 / 17:00 IST
The luxurious London residence of Vijay Mallya was bought using Indian taxpayers' money, claims a British agency. Serious Fraud Office (SFO) has found that the mansion called ‘Lady Walk’ was bought by Mallya using money that was routed through his companies in the UK.
As per a report by India Today, the investigation by the agency has revealed that Mallya bought the mansion for Rs 39.7 crore using Kingfisher Airlines' HSBC account in London. The money, as per reports, was paid to the British company Continental Administrative Services which had “ownership interests” in the Hertfordshire mansion that earlier belonged to F1 racer Lewis Hamilton.
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The SFO also stated that close to Rs 242 crore was routed from the Axis Bank account of Kingfisher to its London-based accounts. As per the agency, loans disbursed by various Indian banks to Mallya were also diverted using this Axis Bank account.
As per the reports, the SFO is sharing the details with Central Bureau of Investigation(CBI) that has been in pursuit of the absconding liquor baron.
In April, Moneycontrol had reported about an Enforcement Directorate provisional attachment order that was issued last year that Kingfisher Airlines had, between 2007 and 2012, remitted funds worth Rs 3,280 crore to foreign entities, shown to be payments made towards aircraft rental leasing and maintenance, servicing and spare parts.
Also Read: Vijay Mallya gifted $40 million to his children, funnelled Rs 3200 crore overseas: ED’s dossier
Mallya, under pressure from banks to repay Rs 9,000 crore loans owed by his grounded Kingfisher Airlines, left India on March 2 last year, was arrested in London on Tuesday. He was later released on bail.
The ED had also made a case alleging that Mallya received USD 40 million (out of an agreed USD 75 million) on February 25, 2016, from London-based liquor major Diageo Plc, barely a week before he left India.
According to ED, the transaction was structured in a manner to receive the payments overseas with the intent of keeping this money out of reach of India.
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In November, Mallya’s lawyers told the Supreme Court that the USD 40 million has been transferred to his three children through gift settlements.
In an affidavit submitted before the apex court, he stated that the money had been transferred to his three children—Siddharth, Leena and Tanya Mallya—who were US citizens and sole beneficiaries of the three respective trusts of which he had no control in his individual capacity.
Mallya had received a payment of USD 40 million out of a USD 75 million package from Diageo following his resignation as chairman of United Spirits Ltd.
The ED had also made a case of money laundering against KFA and Mallya regarding the sale of a land of 264 acres in Coorg in January, the proceeds of which have been laundered overseas.
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