Vijay Mallya Evades Indian Law, ED Tells Bombay HC

Vijay Mallya, the former liquor baron, continues to evade the legal process in India, according to the Enforcement Directorate (ED). The ED has submitted an affidavit to the Bombay High Court stating that the recovery of debts by banks does not absolve Mallya of the money laundering charges against him.

The affidavit was filed in response to a petition by Mallya in 2020 seeking the closure of criminal cases lodged against him. Mallya had contended that his dispute with the banks was settled after the debts were recovered. However, the ED argued that the recovery of assets worth Rs 14,131.6 crore by the SBI-led consortium does not cancel or lead to the dropping of the money laundering charges.

Mallya has been accused of money laundering and misappropriation of at least Rs 3,500 crore out of Rs 9,000 crore bank loans granted to his now-defunct Kingfisher Airlines. The ED had provisionally attached his properties in 2016, including shares of United Breweries Holdings Ltd (UBHL).

The ED stated that Mallya left India in March 2016 and did not appear before the investigating authority despite repeated summons. A non-bailable warrant was also issued against him, and in November 2016, he was declared a proclaimed offender.

The agency noted that Mallya continues to evade the process of law and has not returned to India or submitted himself to the jurisdiction of the competent criminal court. Despite inquiries from the High Court, Mallya remained elusive in his replies.

The ED argued that the criminal prosecution launched under the Prevention of Money Laundering Act (PMLA) is not rendered infructuous merely because the claimant banks have recovered substantial amounts from the assets restored to them. The restoration of assets under PMLA is a statutory mechanism for legitimate claimants to recover their losses.

In 2019, a special court permitted SBI and other lender banks to use Mallya's attached movable properties for debt recovery. The ED's affidavit is a significant development in the ongoing case against Mallya, who has been accused of serious financial crimes.

The case against Mallya has been ongoing for several years, with the ED and other agencies working to bring him to justice. The Bombay High Court's decision on Mallya's petition is still pending.

The ED's stance on the matter is clear: the recovery of assets does not absolve Mallya of the money laundering charges against him. The agency is determined to pursue the case and ensure that Mallya is held accountable for his alleged crimes.

The outcome of the case will have significant implications for India's efforts to combat financial crimes and bring fugitive economic offenders to justice. The ED's efforts to pursue Mallya and other fugitive offenders demonstrate the agency's commitment to upholding the law and protecting the interests of the Indian people.

In conclusion, the ED's affidavit to the Bombay High Court is a significant development in the ongoing case against Vijay Mallya. The agency's stance on the matter is clear, and the outcome of the case will have important implications for India's efforts to combat financial crimes.