Don’t derail justice

Mallya’s offer to settle should not affect legal process

Fugitive liquor tycoon, Vijay Mallya, declared a wilful defaulter by the banks, has long been silent in exile as the Indian government’s request for his extradition wends its way through the British courts. Mr Mallya had fled the country in March 2016 and has been living in London since then, evading Indian efforts to bring him to book. He has now broken that silence, becoming active again on the micro-blogging website Twitter and releasing letters that he wrote two years ago to the prime minister and other officials. These letters lay out Mr Mallya’s case — not in legal terms, but for the court of public opinion. He outlines his claims to being a legitimate, indeed successful businessman; argues that the difficulties faced by Kingfisher Airlines were beyond his control and that he had appealed for government assistance at various times in vain; and insists that he is being turned into a scapegoat or “poster boy” for bank defaults. He objects in particular to being called a wilful defaulter, claiming that he took a loan of ~55 billion and paid back ~13 billion — and is willing also to pay back another ~44 billion but the banks are demanding that he also pay interest charges that take up the whole amount to ~90 billion. Mr Mallya has also offered to sell assets worth ~139 billion under judicial supervision, and said that if this is rejected then it proves that he is being treated unfairly.

How should the government respond to Mr Mallya? First of all, this is not the first time that Mr Mallya has reached out in this manner. In March of 2017, he had similarly argued that he was willing to come to a one-time settlement with the banks, saying “Hundreds of borrowers have settled. Why should this be denied to us?” At that point, he had also called for a Supreme Court intervention. The fact is, however, that the banks have rejected Mr Mallya’s offer previously. Now the law must take its course; Mr Mallya has already been dubbed a “proclaimed offender” in the courts. The Enforcement Directorate is set to soon file a fresh charge sheet against him and his companies on charges of money laundering and alleged cheating. In fact, this outburst from Mr Mallya is a reminder that the government must, in fact, do whatever is necessary to speed up the legal process; justice must not be derailed.

Mr Mallya has his own reasons for going public at this point. He is in the midst of a complex extradition process in the United Kingdom, and part of his argument is that he will not receive a fair trial in India. His claim of being made a scapegoat and denied the right to settle his dues for political reasons is part of this larger narrative that he seeks to build up in order to frustrate Indian attempts to extradite him from Britain. This also comes just days after the government has sought to move on him under the new Fugitive Economic Offenders Ordinance. There can be no reason to suspend the due application of law in Mr Mallya’s case. Mr Mallya’s argument that he is being made a scapegoat, even if taken at face value, should merely be a reminder that other cases should also be prosecuted with similar zeal.