Vijay Mallya continues to evade law, asset recovery does not end money laundering case: ED to Bombay HC

Vijay Mallya continues to evade the legal process in India and the recovery of bank dues does not bring an end to the money laundering proceedings against him, the Enforcement Directorate has told the Bombay High Court.

The ED, in an affidavit filed on September 8, opposed Mallya’s 2020 petition seeking closure of criminal cases against him. Mallya had argued that his dispute with the banks had been settled after the lenders recovered their dues.

The agency said assets worth Rs 14,131.6 crore had been restored to the SBI-led consortium, but this did not extinguish the money laundering charges against Mallya.

Mallya left India in March 2016 and failed to appear before the investigating agency despite repeated summons, the ED said. A non-bailable warrant was subsequently issued against him and he was declared a proclaimed offender in November 2016.

The agency said Mallya had continued to remain outside the jurisdiction of Indian courts despite queries from the High Court on whether he intended to return and submit himself to the legal process.

The prosecution under the Prevention of Money Laundering Act (PMLA) could not be rendered infructuous merely because banks had subsequently recovered substantial amounts from assets restored to them, the ED said.

It said restoration of assets under the PMLA was a statutory mechanism intended to enable legitimate claimants to recover their losses and did not affect the criminal proceedings.

Mallya is accused of laundering and misappropriating at least Rs 3,500 crore out of loans of around Rs 9,000 crore extended by banks to his now-defunct Kingfisher Airlines.

The ED had provisionally attached Mallya’s properties in 2016. In 2019, a special court allowed the SBI-led consortium of lenders to use the attached movable assets for recovery of dues. These included shares held in United Breweries Holdings Ltd

(With inputs from PTI)