Vijay Mallya seeks a breather of 1 month from agencies against accusations of siphoning funds abroad

UB Group chairman Vijay Mallya accused of absconding from India has seeked one month’s time to appear before SFIO (Serious Fraud Investigation Office ). Serious Fraud Investigation Office (SFIO) is a multidisciplinary organisation under Ministry of Corporate Affairs, established to investigate serious financial frauds.

SFIO is probing into a possibility of diversion of funds abroad by Vijay Mallya. Vijay Mallya has offered an explanation to the effect that the funds used abroad are genuine expenses incurred during airline operations.

The investigative agency has complained of a lack of co-operation from the UB Group of companies, and interestingly from lenders as well. According to media reports, only IDBI Bank has submitted details of transactions, and the other 16 lenders are yet to submit the details of transactions  which will help investing agencies in concluding whether any siphoning of funds abroad actually took place.

CBI (Central Bureau of Investigation) and SFIO, which are both investigation agencies, have publicised their disappointment over lack of co-operation from both United Breweries and Mangalore Chemical Fertilizers. Also the documents related to Mallya’s pay-out deal, associated with United Spirits and Diageo are awaited by the agencies.

Only yesterday Vijay Mallya had offered to pay Rs. 6000 crores against total dues of Rs. 9000 crores to SBI led consortium of lenders. Rs. 4000 crores of this Rs.6000 being one time payment by end of September; and the residual Rs. 2000 crore to be paid if he wins a lawsuit filed against a plane engine maker.

By asking for a period of 1 month to meet the agencies, Vijay Mallya seems to be responding to the increased pressure from all stakeholders including the  bureaucracy.