Court issues LoR to US for aiding CBI in probe against Mallya

 A special CBI court in Mumbai has issued a Letter of Request to United States for aiding Central Bureau of Investigation in its probe into a multi- crore bank fraud case against Vijay Mallya.Special court judge Jayendra C Jagdale issued Letter of Request (LoR) on Monday after CBI filed an application for same.

Central Bureau of Investigation said it needed some new evidence from United States and permission from US Attorney general for use of some evidence that CBI alrey has received from US.An LoR is a formal communication sent in writing by a court to a foreign court or concerned judicial authority in cases where probe or judicial proceedings are pending.

CBI recently approached special court here for issuance of LoR to conduct a probe to ascertain utilisation of funds received in US-based bank accounts of Mallya and w defunct Kingfisher Airlines (KAL). probe ncy h also prayed for collecting evidence pertaining to se bank accounts.

CBI told court ir probe in India has revealed that after availing loans from IDBI Bank, State Bank of India and or consortium of banks, accused diverted sanctioned amounts for purposes or than those avowed to banks.Giving a specific example, CBI said an aggregate amount of Rs 263.08 crore, out of loans availed from IDBI Bank in 2009, was diverted for purposes like payment of TDS overdues, lease rentals of corporate jet used by Mallya privately, payment of salaries and ors.

Citing ar instance, probe ncy said a diversion of Rs 15.90 crore to Royal Challengers Sports Private Limited, a Bengaluru-based based IPL Team, from proceeds of SBI loan in May 2009 has also surfaced.Similarly, re are significant diversions to related parties, associates and entities like Force India Formula One team, it said.

It furr submitted that re are or large scale transfer of funds from loans availed by KAL to its own USA/overseas accounts.

Thus, re are reasons to believe that loans availed from Indian banks were diverted out of country and invested by Mallya in several overseas companies based in USA and or countries, CBI said.

funds lying in such accounts are proceeds of crime, it ded.Accepting CBI's submissions, judge Jagdale on Monday ordered issuance of LoR to Attorney General, Washington DC, for conducting probe and providing evidence with regard to accounts associated with Mallya and KAL.

case against Mallya pertains to an alleged fraud of Rs 900 crore in IDBI Bank. embattled liquor baron also faces probe in ar case related to alleged fraud amounting of more than Rs 9,000 crore in a consortium of banks led by State Bank of India.