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banking

• Taming untamed The leash is tightening
around embattled liquor baron Vijay Mallya
Earlier Mallya (63) last month be-
came the first businessman to be
declared as a fugitive economic
offender (FEO) under the Fugitive
Economic Offenders Act, which
came into existence in August, 2018.
A special court in Mumbai had de-
clared absconding liquor baron
Vijay Mallya a fugitive economic of-
fender on a plea of the Enforcement
Directorate. With this, Mallya has
become the first businessman to be
declared EFO under the provisions of
the new Fugitive Economic Offend-
ers Act which came into existence in
August last year.
The ED had requested the Preven-
it had no objection to the restoration tion of assets in their favour was in tion of Money Laundering Act (PMLA)
of fugitive businessman Vijay Mallya’s public interest.“In light of these facts court that Mallya, who is currently in
properties to a consortium of banks, and circumstances, it is prayed that the UK, be declared a fugitive and his
but the banks should give the under- the court may graciously be pleased properties be confiscated of about
taking to return the amount claimed to allow the instant application in the 12,500 crore worth of assets. It is a
by them to the court in the future. interest of justice and/or pass any such second major setback for erstwhile
The central probe agency submitted order that it deems fit in the interest of liquor baron. This means now the gov-
its affidavit in response to an applica- justice,” the ED submitted. ernment can initiate to confiscate his
tion filed by the consortium of banks, properties in alleged 9,000 crore loan
led by the State Bank of India (SBI), default case. The Special Prevention
seeking restoration of properties of of Money Laundering (PMLA) judge
Mallya, who is accused of defaulting Chronology of Events MS Azmi in his oral order declared
on loans worth over 9,000 crore. Mallya, a fugitive economic offender
According to the consortium, the under Section 12 of the act, on a plea of
amount claimed by the banks was ♦ 2013: Banks seek Enforcement Directorate (ED).
around 6,200 crore. `6,493-crore loan “Section 17 of the FEO act provides
In its affidavit filed before special payback taken for King from the challenge of the proclama-
PMLA judge MS Azmi, the ED said it Fisher Airlines tion in the High Court within 30 days
had left the matter to the best judg- ♦ Mar 3, 2016: Mallya flees and I am very sure that Mallaya’s law-
ment of the court to grant the prayer India, takes refuge in yers will want to explore the option,”
made by the applicant (a consortium London said Zulfiqar Memon, managing part-
of banks). “However, in case the court ner of law firm MZM Legal. “More than
deems it fit to allow the application, it ♦ Feb 2017: India sends anything, this order could mean that
shall take an undertaking from them an extradition request to his properties can now be confiscated
(consortium of banks) to return the the UK and sold by the Government, which
said amount with interest, in case may be most detrimental to Mallaya.”
the court at any point deems ‘fit and ♦ Dec 4, 2017: Extradition In July 2018, the ED had filed an
appropriate’ in the ‘interest of justice’ trial begins application before the court, seeking
to deposit the amount before it or to ♦ Dec 10, 2018: Magistrate to declare Mallya a ‘fugitive economic
the complainant without delay,” the court orders extradition offender’ under the Fugitive Economic
affidavit said. Offenders Act, 2018 and had also
The agency further said that since ♦ Feb 3, 2019: UK Home sought to immediately confiscate his
all the applicants, except one, were Secretary orders the ex- assets of over 12,500 crores.
public banks, the money sought to be tradition of Vijay Mallya
recovered was public money, restora- letters@tehelka.com

Tehelka / 28 february 2019 41 www.Tehelka.com