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Mallya didn't use Rs. 430 crore for property abroad : UB Group tells special court

by IBNS 18 Apr 2016, 09:18 am

Mumbai, Apr 18 (IBNS) Vijay Mallya's UB Group on Monday denied that the Beleaguered business tycoon had used Rs. 430 crore of the bank loan extended to Kingfisher Airlines for acquiring property abroad.

"The allegation that Vijay Mallya used Rs 430 crore for properties abroad 'factually incorrect', it told told a Mumbai court, denying the charge posed by the Enforcement Directorate, which is probing the alleged Rs. 9000 crore money laundering case.

The group has moved an application before a special court in Mumbai, which is expected to decide on Monday on a request for a warrant against the former liquor baron.

The UB Group said that the loan was extended for legitimate business purposes and assured that it will provide full details in the coming days.

"The audited accounts of Kingfisher Airlines including for the year ended (March 2010) show all foreign exchange transactions which includes funds borrowed from IDBI Bank used for legitimate business purposes only," a UB group spokesman has said.

Mallya has been put on the dock for defaulting on repayment of the bank loans extended to the now-defunct  Kingfisher Airlines, of which he was the Chairman.

The ED, which made the allegation in court, has asked for a non-bailable warrant against  Mallya, who has been abroad since March 2 after a consortium of banks stepped up pressure to recover the loans. 

The government  on Friday suspended the diplomatic passport of Mallya  and said the passport would be revoked if he did not respond within a week.