ED continues to grill former UB Group CFOs for 2nd day

CFOs questioned for 9 hours; we want to know where money has gone, said an ED official

The Enforcement Directorate (ED) on Saturday for the second day questioned officers of the UB group. Former Chief Financial Officers of the UB group, Ravi Nedungadi and A Raghunath, were questioned for nine hours at the Ballard Estate office of the ED.

Vijay Mallya

The ED’s investigations revolve around the bank loans that the grounded airlines and the group took from a consortium of nationalised banks, and an alleged default of over R900 crore loan from IDBI bank. “We want to know where the money has gone,” said an ED official. The ED has also summoned Vijay Mallya to appear in court on March 18, which they haven’t got an answer to.

The ED had issued summons to over half a dozen officials of the IDBI bank and Vijay Mallya-owned KFA under provisions of the Prevention of Money Laundering Act (PMLA). In an communication sent to all field officers, the Income Tax department has asked its officials to not “send or pursue” any tax demands or harass former Kingfisher Airlines employees. The employees have alleged that they were under tax scanner as Kingfisher had failed to deposit the tax deducted at source (TDS) with the income tax department.

Delhi Chief Minister Arvind Kejriwal demanded Prime Minister Narendra Modi’s “explanation” over how business tycoon Vijay Mallya could leave the country which he claimed was not possible without “approval” from the top. Meanwhile, Janta Dal Secular minister Deve Gowda supported Mallya and called him the “son of the soil”, and former J&K chief minister Farook Abdullah said Mallya was a “gentleman” and would return to India on his own.

— With agency inputs

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!