 "Vijay Mallya")
The ethics committee of the Rajya Sabha, chaired by the Congress’ Karan Singh, has “unanimously decided” to begin the process for ending businessman Vijay Mallya’s membership of the Rajya Sabha, which anyway concludes in June. Mallya is an Independent member.
The committee met on Monday and decided to give Mallya, charged with default of more than Rs 9,000 crore of loans, a week to explain his conduct, which according to members is a “procedural formality”.
A consortium of banks in their reply filed before the Supreme Court have alleged that non-disclosure of assets by Mallya showed his lack of bonafides. Over the weekend, Mallya’s diplomatic passport has been revoked and an arrest warrant issued against him by a Mumbai court.
Karan Singh told the media after the ethics committee meeting, “We have examined the entire issue related to Mallya’s case. The documents we had sought from banks have also come. There was a unanimous view in the panel that he should be expelled from the House membership. But, still we have decided to give him a week to tell us whatever he has to say. The next meeting of the committee has been fixed on May 3, when we will take a final decision.”
CPI(M) General Secretary Sitaram Yechury said the opinion in the committee was that Mallya had no right to remain a member of the Rajya Sabha. Janata Dal (United)’s K C Tyagi added, “Mallya will be expelled. This is the firm view of the committee.”
The committee had sought details of the liabilities on Mallya’s Kingfisher Airlines from 13 banks. According to the banks, the total debt is Rs 9,432 crore. Of this, IDBI's liability is Rs 1,6874 crore and Punjab National Bank’s Rs 1,223 crore.
The committee decided to initiate action against Mallya on the ground that he’d never declared these liabilities in the past 10 years of his membership, something required to be done annually. The House’s chairman, Hamid Ansari, had on the basis of notices given by Opposition members referred the matter to the committee last month. The panel had taken cognizance of the matter on March 14.
In the Supreme Court, the consortium of banks in their reply to his affidavit filed four days earlier have asserted he was bound to disclose his assets as ordered by the court. The case is slated to come up for hearing on Tuesday before a Bench of Judge Kurian Joseph and Judge Rohinton Nariman. In the affidavit, the consortium of 17 banks, led by State Bank of India, has told the court that non-disclosure showed his lack of bonafides. In the face of his attitude, the banks are not able to assess his alleged inability to pay the Rs 9,000 crore demanded from him. It is also a hurdle in a settlement across the table.
The court had asked for details of Malllya’s assets, including that of his close family members, and assets abroad. Supression of this information is deliberate and his stand that he is not bound to disclose them is an attempt to confuse issues, the consortium said. In fact, he had disclosed foreign assets to the banks to the tune of Rs 796 crore in 2009. The banks also claimed a right to proceed against Mallya’s assets abroad.
They alleged he had not even disclosed the payout by London-based liquor firm Diageo which could be considered his own assets. Further, transactions in the equity shares of United Spirits and Kingfisher Airlines, where he had controlling interests, are cloudy. The banks insisted on his return from London where he had gone on March 2 and joining the proceedings in the Supreme Court.
Executives with public sector banks (lenders to Kingfisher) said they were open to a settlement but Mallya had to make a reasonable offer. According to the filings for the case, Mallya’s assets in India are valued at about Rs 2,000 crore.
