Vijay Mallya arrested & granted bail in money laundering case filed by ED

Former liquor baron Vijay Mallya was today arrested in London in a case filed by Enforcement Directorate (ED) for alleged money laundering charges. He was granted bail by the London Court after providing security and bail bond.

Earlier today News18 reported that the Enforcement Directorate had filed a fresh affidavit in London Court saying that Mallya has diverted loan money to tax havens.

The agency has submitted fresh evidence in the IDBI Bank loan case, after the CBI and ED found out that Mallya had diverted a major chunk of Rs 6,027 crore loan, taken from a consortium of 17 banks led by State Bank of India, to several countries including the US, UK, France and Ireland.

A formal extradition request has been made by the Indian government to the United Kingdom under the Extradition Treaty between India and the UK through a note verbale on February 8. Mallya has been wanted by various investigative agencies for loan default and other financial irregularities.

Mallya fled to Britain in March last year, after defaulting on loan payments to state-owned banks and allegedly misusing the funds by rerouting them to tax havens. He had repeatedly refused to appear before courts and investigators in India.

London Police had arrested Mallya in April of this year but was granted bail on the same day.

The final hearing in Mallya's extradition case is scheduled for two weeks, starting December 4.