A Mumbai special court has issued a non-bailable warrant (NBW) against Vijay Mallya, a fugitive businessman, in a case involving a ₹180-crore loan default connected to Indian Overseas Bank (IOB).
The non-bailable warrant (NBW) against Mallya was issued on June 29 by Special CBI Court Judge SP Naik Nimbalkar, and a detailed order was released on Monday.
Referring to previous non-bailable warrants issued against the 68-year-old businessman and considering the CBI’s submission, the court observed that due to his status as a “fugitive”, it was appropriate to issue an open-ended NBW against him to ensure he appears in court.
The CBI, investigating the case, alleges that the promoter of the now closed Kingfisher Airlines intentionally caused a financial loss of over ₹180 crore to the government-run bank by failing to make payments.
The troubled liquor magnate, who has been declared a fugitive economic offender in a money laundering case investigated by the Enforcement Directorate (ED), currently lives in London. The Indian government is pursuing his extradition.
The warrant was issued in connection with a cheating case filed by the CBI. It involves the alleged misdirection of loans taken by the formerly operational Kingfisher Airlines from IOB between 2007 and 2012.
According to the investigation agency, the Reserve Bank of India (RBI) instructed the complainant bank, State Bank of India (SBI), in August 2010 to review Kingfisher Airlines Ltd’s (KAL) proposal for restructuring existing facilities. This directive involved relaxing guidelines specifically for the aviation sector as a one-time measure.
As a result, lenders, including IOB, restructured the current credit facilities for KAL using a Master Debt Recast Agreement (MDRA). This agreement was signed between KAL and a consortium of 18 banks.
The case involves accusations of making false promises and diverting loans for purposes other than originally intended, according to the CBI.
The accused intentionally defaulted on repayment obligations under these loans and caused a financial loss of ₹141.91 crore due to loan defaults, as stated in the chargesheet.
Additionally, the investigation agency claimed that an additional financial loss of ₹38.30 crore occurred due to converting loans into shares.
After reviewing the chargesheet, the CBI court issued summons against Mallya and five other accused in the case.
However, the investigation agency requested a non-bailable warrant (NBW) against Mallya, citing that “the accused is a fugitive and is evading law enforcement”.
Referring to several instances where non-bailable warrants (NBWs) and summonses were issued against the businessman facing legal challenges, the CBI argued that he currently resides in England and “is actively avoiding legal proceedings in India.” Taking the CBI’s stance into account, the court stated that Mallya has fled, been declared a fugitive, and NBWs in other cases remain unexecuted against him. Therefore, issuing summonses to him would be futile.
The court noted that it is appropriate to issue an indefinite non-bailable warrant (NBW) against accused Mallya to ensure he appears in court.
A special court under the Prevention of Money Laundering Act (PMLA) declared the former Rajya Sabha MP a Fugitive Economic Offender in January 2019.
Accused of defaulting on multiple loan repayments and money laundering, Mallya departed from India in March 2016.
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