The Supreme Court today admitted liquor baron and UB Group chief Vijay Mallya's plea seeking quashing of criminal proceedings initiated against him by the Enforcement Directorate in a case pertaining to alleged violation of foreign exchange rules.
Mallya has challenged the Delhi High Court judgment that turned down his plea seeking quashing of criminal proceedings in a trial court for alleged 'wilful' disobedience of summons issued by the Enforcement Directorate over nine years ago.
A Bench headed by Justice H S Bedi admitted Mallya's plea after the Directorate submitted that it is not inclined to withdraw the matter. However, the Court continued its interim order that restrained the Directorate from going ahead with the proceedings.
The Directorate had alleged that Mallya violated FERA provisions while arranging funds for advertising his liquor products abroad a few years ago. It wanted to interrogate him in connection with a contract signed in December 1995 with London-based firm Benetton Formula Ltd for promoting his Kingfisher liquor brand abroad.
Mallya had allegedly paid 200,000 dollars to the British company for displaying his Kingfisher beer logo in the Formula One World Championships to be held in London and some European countries in 1996, 1997 and 1998. The money was allegedly paid without prior approval from the RBI in violation of the Foreign Exchange Regulation Act (FERA).