Ex-Kingfisher employees accuse Vijay Mallya of malicious intentions: All you need to know about his ED, SFIO troubles

The road ahead for Vijay Mallya, once the country's flamboyant business man, is getting tougher day-by-day.

A section of former women staffers of Kingfisher Airlines has accused its chairman Mallya of misleading government and the employees on the revival plan.

In an open letter, which came on the occasion of International Women's Day, the employees accused the beleaguered industrialist of "killing" two airlines and rendering hundreds of people jobless.

"You say that you are not a defaulter. But you confidently told us during the meeting that banks won't be able to recover more than 5-10 percent of debt amount. That speaks volumes of your malicious intentions. In the same meeting, you promised revival, payment of our salary... This clearly means that you had no intention of reviving the airline while you kept submitting misleading revival plans to banks/DGCA," the women staffers alleged in the letter.

As if that wasn't enough trouble, a consortium of 17 banks led by State Bank of India asking Supreme Court to restrain him from leaving India.

The move comes after Mallya and Diageo struck a deal, late last month, wherein the former would be paid $75 million or about Rs 500 crore by the UK-based liquor giant to cede control of United Spirits, the company once controlled by the Indian spirit major.

In further trouble for beleaguered businessman Vijay Mallya, white collar crime probe agency SFIO has launched an investigation into alleged fund diversion and financial irregularities at long-grounded Kingfisher Airlines.

Vijay Mallya - AFP

Vijay Mallya - AFP

Mallya is already facing the heat from lenders over loan defaults, while Enforcement Directorate has registered a money laundering case against him and others.

Regarding the probe by the Serious Fraud Investigation Office (SFIO), Corporate Affairs Minister Arun Jaitley on Tuesday said in written reply to a Rajya Sabha question that the investigation is current "under progress". The agency is looking at alleged "diversion of funds and financial reporting frauds".

Giving details about various probes being conducted by SFIO, Jaitley said the agency has been asked to investigate 42 companies in the current fiscal till 31 December, 2015.

As the man, who was once referred to as 'King of Good Times' faces further probe by the various agencies, here is a look at how the series of events unfolded in the run-up to the Kingfisher saga.

1) Mallya's empire, which ran into troubles beginning with collapse of Kingfisher Airlines four years ago, managed a good deal last month to end a year-long boardroom battle at United Spirits Ltd (USL), wherein he had sold controlling stake to Diageo in a multi-billion dollar deal.

2) Post the announcement of the 'golden parachute' or 'sweetheart deal', markets regulator Sebi, which has begun looking into possible violations of corporate governance and other norms because of this deal, said it would scrutinise the exit offer. Sebi said it is scrutinising intricacies of the deal and may soon seek further details from USL, Diageo, Mallya and others.

3) Recent reports suggested that the Bengaluru debt recovery tribunal has ordered that Mallya cannot access the $75 million severance fee he has been paid by UK drinks major Diageo for stepping down from United Spirits charimanship.

4) Meanwhile, SBI moved four applications at the DRT in Bangalore, seeking impounding Mallya's passport, getting him arrested, securing the lenders' first right on the payout from Diageo and getting full disclosure of his assets in the country and abroad

5) Enforcement Directorate (ED) has also registered a money laundering case against Vijay Mallya and others in connection with the alleged default of over Rs 900 crore loan from IDBI Bank. Official sources said the agency recently filed charges under the Prevention of Money Laundering Act (PMLA) based on an FIR registered last year by CBI in the same case.

6) The CBI had booked Mallya, director of Kingfisher Airlines, the company, A Raghunathan, Chief Financial Officer of the airlines, and unknown officials of IDBI Bank in its FIR alleging that the loan was sanctioned in violation of norms regarding credit limits. The CBI action came as part of its wide probe into criminal aspects of loans declared to be non-performing assets by public sector banks. The ED is looking into the "proceeds of crime" that would have been generated using the slush funds of the alleged loan fraud, they said.

7) Vijay Mallya, who is already facing a wilful defaulter tag from several state lenders, has been under attack from all corners, especially after Kingfisher Airlines defaulted on loans worth Rs 7,000 crore.

8) Meanwhile, a former Kingfisher Airlines employee Sanjay Dey said they didn’t get salaries and were assured that an investor would invest in KFA, but no one came for the investment.

With inputs from agencies

Updated Date: Mar 08, 2016 22:42 PM

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