Mumbai Special Court issues non-bailable warrant against Vijay Mallya

Vijay Mallya was declared a fugitive under the Fugitive Economic Offenders Act in 2019. The recent non-bailable warrant has been issued for a Rs 180 crore loan default

A special court in Mumbai has issued a non-bailable warrant against fugitive businessman Vijay Mallya in connection with a loan default case involving Indian Overseas Bank, according to a report by news agency ANI. The warrant was sanctioned by Special Central Bureau of Investigation (CBI) court Judge SP Naik Nimbalkar on June 29, but only was disclosed on Monday.

Mallya, the former promoter of Kingfisher Airlines, is accused of intentionally defaulting on loans, causing a wrongful loss of over Rs 180 crore to Indian Overseas Bank. The CBI, which is handling the case, alleges that Mallya diverted loans obtained by Kingfisher Airlines from Indian Overseas Bank between 2007 and 2012 for unauthorised purposes.

 

The court emphasised the necessity of an open-ended non-bailable warrant to ensure Mallya’s presence, citing his status as a “fugitive” and various other non-bailable warrants issued against him. The detailed chargesheet filed by the CBI mentions that the credit facilities were part of a restructuring agreement sanctioned by a consortium of 18 banks. The allegations include false promises and loan diversions, resulting in substantial financial losses, including an additional Rs 38.30 crore loss due to the conversion of loans into shares.

Extradition of Vijay Mallya

The CBI court issued summons against Mallya and five other individuals involved in the case after considering the chargesheet details. The probe agency pressed for the non-bailable warrant against Mallya, citing his fugitive status and continuous evasion of legal proceedings in India. Given Mallya’s repeated absence, the court deemed it appropriate to issue an open-ended non-bailable warrant to ensure his attendance in court proceedings.

Mallya, currently residing in London, faces extradition requests from the Indian government. The non-bailable warrant issued pertains to a cheating case registered by the CBI, accusing him of diverting loans and deliberately defaulting on repayments.

Earlier this year, a high-level team of CBI, Enforcement Directorate (ED) and the National Investigation Agency (NIA) had planned to depart for the UK in a bid to expedite the extradition of Vijay Mallya and other wanted fugitives, including Nirav Modi and Sanjay Bhandari.

Vijay Mallya declared fugitive

Mallya left India in March 2016 amidst allegations of loan defaults and money laundering charges. His departure has led to significant legal and financial repercussions, prompting ongoing efforts by Indian authorities to bring him back to face justice.

Billionaire Vijay Mallya was declared a fugitive under the Fugitive Economic Offenders Act, 2018, in 2019, nearly four years after he absconded to the United Kingdom in March 2016. Mallya is sought for defaulting on loans amounting to approximately Rs 9,000 crore, taken from 17 Indian banks, for the now-defunct Kingfisher Airlines (KFA). He is also a former member of the Rajya Sabha.