Rs 500 crore of the Rs 900 crore loan taken from the IDBI bank by former liquor baron Vijay Mallya had been laundered the Enforcement Directorate has said. This was stated in the affidavit filed by the ED in the UK before the Crown Prosecution Service.
It may recalled that Mallya had been arrested and released on bail on Tuesday. The affidavit says that Mallya had diverted money to seven countries including, the US, UK, France, Ireland and Switzerland.
Further the affidavit states that Mallya had used several shell companies and some of his legitimate companies to divert the money.
There were dummy directors in the shell companies, but the control over business related to the transfer of funds were retained by Mallya.
The extradition case will be heard next in December. Both the ED and the CBI pleas for extradition will come up for hearing together.