Mallya's group denies he diverted Rs 430 crore loan money

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26 Aug, 2025 12:21

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Even as former liquor baron Vijay Mallya continues to face pressure from the Enforcement Directorate, UB Group has denied charges that he misappropriated nearly Rs 430 crore from a loan of Rs 900 crore extended to Kingfisher airlines by IDBI bank to buy property abroad.

The UB Group said that the loan of Rs 900 crore was extended for legitimate business purposes and assured that it will provide full details of the foreign exchange remittances in the coming days.

"In order to explain foreign exchange remittances all of which have been fully accounted for, we will provide full details in the next few days," UB Group said in a statement. It said the audited accounts of Kingfisher Airlines show that the money was borrowed for legitimate business purpose and that the allegation was "shocking".

"The allegation made by the Enforcement Directorate before the PMLA Court that they have stumbled upon evidence that Rs 430 crores was transferred overseas for property acquisition is strenuously denied," it said.

The statement said, "The audited accounts of Kingfisher Airlines including for the year ended 31.3.2010 show all foreign exchange transactions which includes funds borrowed from IDBI Bank were used for legitimate business purposes only."

Multiple investigations have been going on since July 2015 and this allegation has never been made, the statement said. "We are shocked at the allegation made by the Enforcement Department before the PMLA Court for the very first time," it said, adding that "the basis of seeking a Non Bailable Warrant against our Chairman is erroneous and unjustified".

Meanwhile, a court in Mumbai will on Monday give its order on the ED's plea seeking a non-bailable warrant against the former liquor baron. Malllya has said he is willing to join the probe but has insisted on doing so via email and video conferencing.

Mallya, now in Britain, is charged with siphoning off a portion of money involving IDBI loan of Rs 950 crore, which he had borrowed for Kingfisher Airlines. On April 15, the Ministry of External Affairs had suspended the diplomatic passport of Mallya, a Rajya Sabha MP.