Mumbai court asks MEA to initiate extradition proceedings against Mallya

A MUMBAI court on Friday passed an order asking the Ministry of External Affairs (MEA) to initiate extradition proceedings against Vijay Mallya, chairman of the now defunct Kingfisher Airlines and Sanjay Agarwal, chief executive officer of the airlines, in a case pertaining to default of service tax of over Rs 100 crore to the tax authority.

The service tax department had in 2012 and 2015 filed two complaints with the chief metropolitan magistrates court for non-payment of service tax of over Rs 100 crore by Kingfisher, despite collecting this amount from passengers. In September 2016, the court issued non-bailable warrants against Mallya and Agarwal, however these warrants could not be executed as Mallya is currently residing in UK, while Agarwal is in the US.

“The service tax department subsequently on February 17 moved an application for the execution of the non-bailable warrants through MEA in order to extradite Mallya and Agarwal under the Indo-uk Treaty and the Indo-us Treaty respectively. These applications were allowed today by Justice R Jhadhav,” said Ruju Thakker, advocate representing the service tax department said.

Kingfisher owes over Rs 9,000 crore to a consortium of 17 lenders in the country.

Earlier in February, the government handed over CBI'S request to the UK for extradition of Mallya who is facing cases of loan default and other financial irregularities.

Last week, Finance Minister Arun Jaitley told the Lok Sabha that relevant agencies were trying to get Mallya back in India through the extradition or deportation route.

"In the last two-and-a-half years, the government has taken a series of steps. Under the Prevention of Money Laundering Act, attachment orders against Mallya have been issued by the Enforcement Directorate. Assets worth Rs 8,040 crore were attached," Jaitley had said.

On Friday, Minister of State for Finance Santosh Gangwar, without naming Mallya, told the Lok Sabha during Question Hour that the loan of Rs 8,040 crore to the industrialist was declared a nonperforming asset (NPA) in 2009 and was restructured in 2010. The loan, granted in September 2004, was reviewed in February 2008, the Minister said.

"Our government has taken action against him (Mallya). He is currently living in the UK. Various agencies have issued summons to him. Following Following our requests, the Ministry of External Affairs has revoked his passport and we are taking action so that he faces justice," he said.