ED’s charges against Mallya shocking, warrant unjustified: UB Group | business | Hindustan Times
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ED’s charges against Mallya shocking, warrant unjustified: UB Group

Rejecting the charge, the UB group said it would provide full details of foreign exchange remittances in the next few days.

business Updated: Apr 18, 2016 17:34 IST
Vijay Mallya interacts with journalists in New Delhi.
Vijay Mallya interacts with journalists in New Delhi.(Reuters File Photo)

Embattled industrialist Vijay Mallya’s UB Group “strenuously denied” on Sunday the allegation by the Enforcement Directorate (ED) that he siphoned off nearly Rs 430 crore from the loan extended to Kingfisher Airlines by IDBI bank for acquiring property abroad.

Rejecting the charge, the group said it would provide full details of foreign exchange remittances in the next few days.

A statement issued by the group 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.

Read | Order reserved on ED plea for non-bailable warrant against Mallya

The statement said, “Multiple investigations have been going on since July 2015 and this allegation has never been made. We are shocked at the allegation made by the Enforcement Department before the PMLA Court for the very first time,”.

It said, “the basis of seeking a Non Bailable Warrant against our chairman is erroneous and unjustified”.

A special Prevention of Money Laundering Act (PMLA) court has reserved its order till Monday on the plea of the central agency, which probes financial crimes, for a NBW against the beleaguered businessman.

Read | Govt had nothing to do with Mallya’s case, says Jaitley

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.