According to the indictment, the former managing director of IDBI Bank, Buddhadev Dasgupta, abused his position and colluded with colleagues and Mallya in the issue of sanctions and disbursement of short-term loans (STL) of Rs 150 crore to Kingfisher Airlines in October 2009 .
Along with 11 suspects named in the earlier indictment forms, the CBI has added Dasgupta’s name to the supplemental indictment form recently filed.
According to the CBI, the STL was requested for six months to meet certain critical obligations to foreign suppliers, including aircraft lessors and other service providers.
The said loan of Rs 150 crore originally provided by Dasgupta (through a proposal circulated to members of the credit committee) was to be adjusted/repaid out of the total loan of Rs 750 crore originally requested by the airlines.
However, after circulating, there was a change in the proposal to show as if the credit committee had treated this as a separate loan, which may or may not be modified/recovered from the total loan, according to the CBI.
While IDBI Bank’s exposure was to be limited to the total amount of Rs 750 crore, it rose to Rs 900 crore in December 2009 as this STL was largely held as a separate loan on behalf of Dasgupta, the indictment said.
During the course of the investigation, Rogatory Letters (LRs) had been sent to the UK, Mauritius, US and Switzerland with the authorization of the CBI court.
Courts of one country seek the assistance of courts in another country for the administration of justice there through EAAs.
The indictment also listed evidence gathered from these countries during a foreign investigation.
“The properties in the UK (Ladywalk in 2015-16 for GBP 12-13 million or Rs 80 crore) and France (Le Grand Jardin in 2008 for Euro 35 million or Rs 250 crore approximately) were acquired by Mallya even when Kingfisher Airlines was facing severe cash crunch (2008),’ according to the chargesheet.
Mallya had sufficient funds between 2008 and 2016-2017, but none of it was brought forward to support the airlines as a capital injection or to fulfill its obligations as a personal guarantor for the loans KAL had provided from IDBI and other banks in India. , it added.
The indictment, which cites evidence gathered through LRs, said substantial sums were transferred to the Force India Formula 1 Team between 2008 and 2012.
The charge sheet further said that between 2007 and 2012-2013, significant funds were diverted to make payments for the acquisition and repayment of the loan for a corporate jet personally used by Mallya.
These acts on Mallya’s part clearly show that he caused the misappropriation of funds for the corporate jet, the Force India Formula One Racing Team and other such extravagant expenses, and then deliberately defaulted on the loans from Kingfisher Airlines, the indictment said .
The above-mentioned facts reveal the commission of crimes such as cheating and criminal conspiracy and others under the provisions of India’s Penal Code and Prevention of Corruption Act against Mallya, Dasgupta and other suspects, according to the CBI.
In addition to the CBI, the Enforcement Directorate is also investigating a money laundering case against Mallya.
On January 5, 2019, a special court here declared Mallya a “fugitive” under the Fugitive Economic Offenders Act. Under the provisions of the law, the prosecution has the power to seize its property once a person has been declared a fugitive economic offender.
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