Mallya seeks stay on proceedings
MUMBAI: Liquor baron Vijay Mallya on Friday sought a stay on the proceedings initiated by the Enforcement Directorate (ED) under the Fugitive Economic Offenders Act to declare him as a fugitive economic offender and to confiscate his properties in and outside India.
Mallya’s legal team moved an application before the special court under the Prevention of Money Laundering Act (PMLA) which was hearing the final arguments on whether Mallya can be declared as a fugitive economic offender. The application sought for a stay on the proceedings till November 26.
Mallya’s counsel Amit Desai sought the stay on the basis of the order passed by the Appellate Tribunal under PMLA, Delhi, which on October 10 ordered the ED to maintain status quo with regard to Mallya’s properties till the next hearing on November 26.
The Tribunal is hearing the plea filed by State Bank of India (SBI) and 11 other banks against the order passed by the Adjudicating Authority, New Delhi (under PMLA) on February 22 , 2017, which confirmed the Provisional Attachment Order passed by the deputy director, directorate of enforcement, attaching various movable and immovable properties of Mallya. Desai claimed that the Tribunal is dealing with the same properties which the ED has listed for confiscation after Mallya is declared a fugitive economic offender. ED counsel DP Singh contended that in such a situation the court can hear the application in two sessions. It can first decide if Mallya will be declared a fugitive economic offender and later it can deal with his properties. He contended that declaring Mallya a fugitive under the new law is the only solution as he is making these pleas to avoid the proceedings.
Desai strongly opposed the plea claiming that if Mallya is declared as an offender, it would prevent him and the companies promoted by him from defending and appearing before the various courts. He contended that the new Fugitive Economic Offenders Act provides for two key consequences of declaration against a person as a fugitive economic offender. First, he claimed that the agency would be allowed to confiscate all the properties and it would go to the Centre. He contended that the creditors and banks would suffer in this case Desai said Mallya was keen on ensuring that the creditors were paid off and his former employees received their pending salaries.
Secondly, Desai said, under section 14, neither Mallya nor companies where he is promoter can initiate or defend any civil proceeding in the country. Under this provision, Desai argued, if Mallya is declared as a fugitive, he would be disqualified from contesting any proceeding which includes suits initiated against the companies for recovery of dues. The court will pass an order on Mallya’s plea by October 30.