Vijay Mallya used IDBI Loan for Kingfisher Airlines to fund formula 1 race team too,' Alleges Enforcement Directorate

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Vijay Mallya used IDBI Loan for Kingfisher Airlines to fund formula 1 race team too,' Alleges Enforcement Directorate 

Business tycoon Vijay Mallya was "the prime mover in the plot" to launder a big chunk of the 900 crore bank loan taken to keep Airlines flying in 2009 and had used part of the IDBI loan to even fund the force India formula 1 team, the Enforcement Directorate has alleged in charges filed in a Mumbai court on Wednesday.

The 57 page complaint listing laundering allegations against Mallya come just a day after a UK court took up India's request for the liquor baron's extradition.the case was tentatively listed for a hearing this year end because the court wasn't sure if the required documents would be available sooner."Are Indian normally very prompt in their responses," Chief Magistrate Emma Louise Arbuthnot had asked at Tuesday hearing.

Officials hope the ED charge-sheet would strengthen the extradition request based on the CBI's case.In January this year, the CBI had arrested top IDBI officials including the bank's former chief Yogesh agarwal and A Raghunathan of the now-defunct airline.

In its charge-sheet, the directorate that probes financial crimes alleged nearly 417 crores of the 900 crores had been diverted by Mr Mallya through a web of companies to firms in Singapore, Mauritius and Cayman islands. Some of the money also went to fund the formula 1 team that Mr Mallya promoted.

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