ED to do forensic audit of Mallya's accounts

Probe agency to set up special software to probe money trail in the case.

The Enforcement Directorate (ED) will conduct a forensic audit of Vijay Mallya’s and related companies’ accounts, to collect money trail details in connection with the Rs 6,963 crore (Rs 69.63 billion) borrowed by him and his now-defunct Kingfisher Airlines.

The ED is formally probing Mallya and Kingfisher Airlines under anti-money laundering laws in connection with a Rs 950 crore (Rs 9.5 billion) loan default to IDBI bank.

The probe agency has commissioned a special software aimed to interconnect banks across the country.

“The government wants to set up this system to do a 360-degree mapping of the case. The transactions related to Mallya happened in several layers and a complex web. That is the reason a special software needs to be designed,” a top ED official told Business Standard.

Adding: “Enforcement sleuths are being trained to understand and operate the software. Nearly Rs 5 crore would get invested.” This software will use Miscrosoft Excel pivot tables and macros, and Idea, a global data analysis and data mining software. This will help the agency analyse all the data and locate fraudulent transactions in core business systems.

“The new software will help the agency to probe three crucial aspects. First, how much money had been spent on vendors, sub-vendors and aircraft-related entities by Kingfisher Airlines, and what strategies were put in place. It will also aid in identifying whether these vendors paid the money to a second layer or third layer of companies. And, if yes, how much? The second aspect is - where has the money (bank loan) gone? Is it in India or abroad? The third crucial aspect is who the beneficiaries are,” said another ED official.

ED director Karnal Singh has had a meeting with Central Bureau of Investigation officials and with representatives from the consortium of banks which are owed loans by Mallya-Kingfisher.

The two investigative agencies are understood to have shared details on the probe each has undertaken so far in the case, also being heard by the Supreme Court.

The ED has exhausted all legal options to make Mallya comply with its demand that he return to the country for questioning.

A non-bailable warrant had been issued against him by a Mumbai court, based on which the probe agency made requests for revocation of his passport and subsequent deportation from London. However, British authorities have said Mallya could not be deported and asked India to instead seek his extradition.