The King of good times is not having a good time as he has been arrested in London in money laundering case, according to state broadcaster DD. The details are awaited but according to media reports, the arrest may be procedural and a bail order may be in place.
Mallya has been rejecting allegations by investigation agencies that he diverted most of the Rs 6,000 crore borrowed from a State Bank of India-led consortium of lenders as fabricated and baseless. This is the second arrest this year. He was arrested in April and was granted bail.
The Central Bureau of Investigation and the Enforcement Directorate, in their yet-to-be-filled charge sheet, said the funds were allegedly laundered to shell companies in half a dozen countries.
Mallya, who fled to the UK from India in March 2016, said in January the allegations of fund diversion were a ‘joke’ and that he was getting used to “witch hunts coming from all directions with no legal basis whatsoever.”
With the fresh allegations, Mallya may find the going tough when his extradition case comes up for hearing in December.
— Doordarshan News (@DDNewsLive) October 3, 2017
Investigative agencies including the CBI and the ED recently completed the submission of probe evidence to the British Crown Prosecution Service.
Officials from the investigative agencies said they are filing a fresh prosecution complaint and have issued letters rogatory to seven countries to establish the alleged diversion of funds to shell companies.
The agencies expect responses from the UK, the US, France and Ireland.
“He can say whatever he wants, but ours is a watertight case,” said a senior official privy to the development.