Controversial businessman Vijay Mallya could be in for more trouble as Britain's Serious Fraud Office (SFO) reportedly launching a probe against the liquor baron for alleged "money laundering" in UK and other countries.
British officials are investigating Mallya's alleged use of various firms for laundering money from India to the UK through a complex web of companies, according to Times of India. The UK investigators also suspect that he is also laundering money to Switzerland and other countries.
Reports state that the SFO has already assimilated substantial information about the businessman's movable and immovable assets, his investment and shares in several companies in Britain and also his bank account information.
The investigation agency has decided to launch an independent probe against the fugitive Indian tycoon to examine whether the allegedly laundering involved British firms associated with him.
The British authorities reportedly have informed India about the 'formal' independent investigation against the liquor baron. They have also sought more information about the alleged money laundering and Mallya's assets abroad from the Central Bureau of India (CBI) and Enforcement Directorate (ED).
Indian government sources told TOI that the SFO action should assist in strengthening India's extradition case against Mallya, which is currently being heard in the Westminster Court.
According to the extradition treaty between India and UK, a 'dual criminal' clause of a person's illegal activities has to be established to enable their extradition from the other country.
Therefore, the clause will seek to ensure whether Mallya has cheated public banks in India and his alleged money laundering in UK has to be proved a 'crime' in British law as well.
"India has already provided ample evidence on how Mallya used his companies/associates to invest in Britain from the money he cheated in India and how Britain's soil has been used to further launder money to other countries. Now, SFO probe will provide more evidence, collected by British investigator," a senior government official said.
