Vijay Mallya
‘Time to move on’: Bombay HC sends strong message in Vijay Mallya-bank dispute
Mumbai/IBNS: The Bombay High Court on Wednesday said the long-standing dispute between fugitive businessman Vijay Mallya and a consortium of banks needs to be brought to an end, observing that prolonged proceedings could have a wider impact on the country's economy.
A single-judge bench of Justice Milind Jadhav made the observations while hearing Mallya's plea challenging an order of a special Prevention of Money Laundering Act (PMLA) court that had allowed a State Bank of India (SBI)-led consortium of banks to utilise assets belonging to him that had been attached by the Enforcement Directorate (ED).
Mallya was declared a Fugitive Economic Offender in January 2019 under the Prevention of Money Laundering Act (PMLA).
The former liquor baron, accused of defaulting on multiple bank loans and facing money-laundering charges, left India in March 2016.
Mallya's 2020 plea comes up
Senior advocate Amit Desai, appearing for Mallya, told the court that the petition was filed in 2020 when settlement talks were underway.
He submitted that six years later, the circumstances had changed and most of Mallya's assets had already been attached.
The court issued a notice to the ED and sought details on the current status of its investigation and the assets attached so far.
Kingfisher Airlines loan default
Mallya has been wanted in India in connection with the financial affairs of now-defunct Kingfisher Airlines, with banks pursuing recovery of dues running into thousands of crores.
The report said Mallya was declared a Fugitive Economic Offender on January 5, 2019, and assets worth ₹14,131.6 crore were confiscated by the Government of India.
Mallya remains in the UK
Mallya left India for the United Kingdom in March 2016 and continues to face legal proceedings in India.
He was declared a fugitive economic offender in 2019, allowing authorities to pursue confiscation of his properties under the Fugitive Economic Offenders Act.
The latest Bombay High Court proceedings concern the asset-utilisation dispute, with the court now seeking an updated picture of the ED investigation and attached properties before proceeding further.
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