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CBI court issues LR to USA in Mallya case

Mallya case

A special Central Bureau of Investigation (CBI) court has allowed CBI’s request to issue a letter rogatory (LR) to the United States to verify the utilization of particular funds held in different accounts in the USA, which the agency claims were allegedly diverted by fugitive economic offender (FEO) Vijay Mallya and his company, Kingfisher Airlines Limited for the purposes other than acknowledged to the bank.

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Case registered by CBI

In 2016, the CBI agency has reported two First Information Reports (FIRs) on the matter including the case recorded on the complaint of IDBI Bank for extorting them on the loan of Rs. 900 crores and another case registered by bank State Bank of India (SBI) causing them a loss of Rs 6027 crore between the years 2005 to 2010.

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According to the CBI application, A LR is required for the processing Foreign investigation in the USA to verify the utilization of the funds(money) received in the account kept with First Commerce Bank (now known as Pacific Premier Bank) during the time interval December 2007 to March 2009, collection of evidence belonging to the amount of $20 million remitted by Airbus SAS, France in June 2008 and collecting evidence with regard to remittal of $5,381,945.93 on June 27, 2012, from State Bank of Mauritius to the Nostro account kept by the beneficiary.

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Fraud of millions of dollars

Further, The application added that there are sufficient reasons and evidence to believe that the funds transferred to the account of KAL with First Commerce bank, The amount of $20 millions remitted by Airbus SAS France to the accounts of KAL in the USA, and an amount of $5,381,945.93 remitted to the Nostro account from the account of Veling Narain Ltd and another may have been fluctuated by the accused persons.

The investigation agency has also requested the CBI court to issue an LR that will grant permission to the officials to the use of the evidence that was already provided by the United States Department of Justice (USDOJ) in two cases.

According to the agency probe, the loans assisted by IDBI Bank, State Bank of India, and other consortium Banks, Mallya and KAL have allegedly fluctuated the sanctioned amount for the purposes other than acknowledged to the Bank.

 

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