ED unearths new shell firms linked to Mallya

The ED has unearthed an alleged nexus of slush funds being transferred to fugitive liquor baron Vijay Mallya by his India-based “close associate” with the help of shell companies, official sources said on Monday stating that the probe in the multi-crore bank fraud case has widened.

The federal agency last week conducted its first-ever raid operation, under the newly enacted Fugitive Economic Offender (FEO) law, against Bengaluru-based V Shashikant and his family after it has obtained some inputs on these purported dubious financial transactions.

Sources said Shashikant is a “close associate” of Mallya, who is facing a criminal charge of over Rs 9,000 crore money laundering and bank default and his extradition from the UK is underway.