This Article is From Jan 26, 2017

'Getting Used To These Witch Hunts,' Says Vijay Mallya After CBI Files Charge Sheet

'Getting Used To These Witch Hunts,' Says Vijay Mallya After CBI Files Charge Sheet

Sebi has barred Mr Mallya from the securities market in a case related to alleged fund diversions.

Highlights

  • Vijay Mallya denies allegations of fund diversion in series of tweets
  • His comments came after CBI filed fresh case against him
  • These witch hunts have no legal basis whatsoever, Mallya tweeted
Vijay Mallya has taken to Twitter to deny allegations of fund diversion after government agencies moved to tighten the noose around the businessman, who fled the country on March 2 last year. The liquor baron in a series of tweets said he is "kind of getting used to these witch hunts coming from all directions with no legal basis whatsoever".
The Central Bureau of Investigation or CBI has filed an a fresh case against Mr Mallya, alleging fund diversion from Kingfisher Airlines. In its charge sheet, the agency said Mr Mallya-led Kingfisher Airlines diverted Rs 263 crore from a Rs 900 crore IDBI loan for "personal use". The charge sheet names Mr Mallya, Kingfisher Airlines and nine others, including the then IDBI chairman Yogesh Aggarwal, who was on Monday arrested in connection with the 2015 loan default case.

The CBI has also alleged that the Rs 900 crore loan was sanctioned in violation of norms regarding credit limits.

Meanwhile, cracking the whip, market regulator Sebi has also barred Mr Mallya from the securities market in a case related to alleged fund diversions from United Spirits. He has been restrained from "holding position as directors or key managerial persons (KMPs) of any listed company". Mr Mallya resigned as director and chairman of United Spirits in March 2016.

Mr Mallya said "allegations of fund diversion out of USL are baseless. USL accounts were approved by top auditors, an eminent Board of Directors and shareholders."

"Kingfisher was a great public utility service connecting India like never before. It was not my private toy," Mr Mallya said in one of the tweets.

"For 30 years I built the Worlds largest Spirits Company n India's largest Brewing Company.Also launched the finest AirlineThis is what I get (sic)."
"CBI alleges diversion of funds OUT of Kingfisher Air.SEBI alleges diversion of funds from USL INTO Kingfisher Air.What joke is this?"

Earlier this month, a Debt Recovery Tribunal in Bengaluru ordered the SBI-led consortium of banks to start the process of recovering Rs 6,203 crore, at annual interest rate of 11.5 per cent, from embattled tycoon Mr Mallya and his companies in the Kingfisher Airlines loan default case.