Court summons Mallya on August 27

THIS IS FIRST ACTION INITIATED UNDER ORDINANCE PROMULGATED BY CENTRE TO DEAL WITH FUGITIVE LOAN DEFAULTERS

Aspecial PMLA court here yesterday summoned beleaguered Indian liquor baron Vijay Mallya to appear before it on August 27 on the Enforcement Directorate’s plea seeking action against him under the fugitive economic offenders ordinance in the over Rs90-billion (Dh4.82-billion) bank fraud case.

Special judge M.S. Azmi, dealing with the Prevention of Money Laundering Act (PMLA) cases, issued the notice to Mallya after taking cognisance of the second ED charge sheet filed against him recently and a subsequent application by it on June 22 seeking a fugitive economic offenders tag.

This is the first time that action has been initiated under the ordinance recently promulgated by the Modi administration to deal with fugitive bank loan defaulters.

The agency has also sought immediate confiscation of assets worth around Rs125 billion of Mallya and other fugitive economic offenders, they said.

If Mallya does not appear before the court, he risks being declared a fugitive economic offender. In addition to that, properties linked to him will likely be confiscated.

The court had earlier issued non-bailable warrants against the beleaguered businessman in the two cases filed by the ED.

Mallya, his now defunct venture Kingfisher Airlines Limited, and others took loans from various banks during the tenure of the UPA-I government and the outstanding amount, including interest, against him is Rs99.90 billion at present, the officials said.

Mallya had recently said that he has become the “poster boy” of bank default and a lightning rod for public anger.

He said he had written letters to both the prime minister and finance minister on April 15, 2016 to explain his side of the story. “No response was received from either of them,” Mallya, who is based in London, had said in a statement.

“I have been accused by politicians and the media alike of having stolen and run away with Rs9,000 crores that was loaned to Kingfisher Airlines (KFA). Some of the lending banks have also labelled me a wilful defaulter,” he said.

The ED has furnished evidence in its two charge sheets, filed under the PMLA in the past, to make a case for seeking a fugitive offender tag for Mallya from the court.

Mallya is contesting the money laundering charges in London after India initiated extradition proceedings against the liquor baron to bring him back to the country. Both the ED and the Central Bureau of Investigation (CBI) have filed cases for alleged loan default against him.

The Modi government brought the ordinance as “there have been instances of economic offenders fleeing the jurisdiction of Indian courts”.