New Delhi, March 11

India’s financial crimes agency today summoned indebted entrepreneur Vijay Mallya in connection with a money-laundering probe, after he left the country owing more than $1 billion in unpaid loans to banks.

The Enforcement Directorate (ED) issued a summons for the liquor baron, who is thought to be in Britain, to appear before investigators in Mumbai on March 18, Press Trust of India reported. The founder of now-defunct Kingfisher Airlines is sought in connection with an alleged case of loan fraud involving IDBI Bank in Mumbai.

“The summons have been issued to Mallya under provisions of Prevention of Money Laundering Act in connection with the IDBI case,” the news agency quoted officials as saying.

With its summons, the agency has also thrown down the gauntlet for Mallya, who denies that he absconded after his surprise departure from India more than a week ago.

A group of banks led by State Bank of India is trying to recover some INR 90 billion in unpaid loans from the tycoon.

Mallya, who is also a member of parliament, earlier tweeted that he would comply with the law and criticised media for what he called a ‘witch hunt’.

“I am an international businessman. I travel to and from India frequently. I did not flee from India and neither am I an absconder. Rubbish,” Mallya posted on Twitter.

His departure is an embarrassment for the government, which had to admit in court this week that he had left the country even as it sought permission to impound his passport. Opposition politicians have demanded to know why the 60-year-old was not arrested before he left the country on March 2.

The Central Bureau of Investigation, India’s leading investigative agency, in October registered a case against Kingfisher Airlines over a suspect loan the carrier received from IDBI Bank.

It alleged the airline’s directors ‘colluded’ with officials from IDBI bank who sanctioned an INR nine billion loan in violation of banking norms.

The ED on Monday tweeted it had initiated an investigation on the basis of the CBI’s report.