Mallya’s passport suspended, court moved for NBW against him

New Delhi

Beleaguered industrialist Vijay Mallya, whose Kingfisher Airlines has defaulted on loans of over Rs 9,400 crores and who has taken refuge in Britain, today suffered a major blow when his diplomatic passport was suspended by the government which has threatened to revoke it.

To add to his misery, the Enforcement Directorate, which is probing money laundering charges against the flamboyant 60-year-old liquor baron, today moved a special PMLA court in Mumbai seeking a non-bailable warrant against him in connection with a Rs.900 crore IDBI loan fraud case.

The passport of Mallya, who is an MP and has been in Britain for over a month and has refused to appear before the ED, was suspended by the External Affairs Ministry on the recommendation of the agency.

“On the advice of the Enforcement Directorate, the Passport Issuing Authority in the MEA has today suspended the validity of Vijay Mallya’s diplomatic passport with immediate effect for a period of 4 weeks, under Section 10 A of the Passports Act, 1967.

“Mallya has been asked to respond within one week as to why his passport should not be impounded or revoked under section 10(3)(c) of the Passports Act, 1967. If he fails to respond within the stipulated time, it will be assumed that he has no response to offer and the MEA will go ahead with the revocation,” MEA Spokesperson Vikas Swarup said.

Mallya, who had refused to appear before the ED on three occasions when summoned between Mar 10 and April 2, had left the country on March 2 the day the consortium of 13 banks that had lent him money had closed in on him by moving the Debt Recovery Tribunal.

The consortium also later rejected his offer of paying an initial instalment of Rs.4,000 crore and settling the rest of the amount later.

Failing to respond to the ED summonses, Mallya had repeatedly sought fresh dates but the agency declined any further relief. (More) PTI PYK VI

government was seriously concerned about the misappropriation of funds of banks by wilful defaulters and fraudsters and identified the Kingfisher Airlines as one such.

They said as of February this year, the Airlines has dues to the tune of Rs 9,432 crore and it has wilfully defaulted on paying back to the consortium of 13 banks.

As Chairman of the airlines, Mallya was instrumental in taking important decisions pertaining to the affairs of the company including getting loans for it from the consortium.

It was noted that despite summons by ED to Mallya to join investigations on March 10 and 15 as also April 2, he was deliberately avoiding his personal appearance, which is a statutory requirement before the agency, in defiance of due procedures.

Several aspects of irregularities and criminal misconduct allegedly committed by Mallya including his role in the offence of money laundering have come to surface, the sources said, adding that they are under investigation by multiple agencies.

Thus, his failure to appear before the investigating authority under Prevention of Money Laundering Act is tantamount to wilful non-compliance and intended to deliberately scuttle the process of investigation.

Against this background, the ED moved the MEA for revocation of his passport. The sources said the government is committed to brining to book wilful defaulters and to recover public money from them.

While the loans issue is being investigated by CBI on charges of criminal misappropriation, criminal conspiracy and under the Prevention of Corruption Act, the Serious Fraud Investigation Office is probing violations under the Companies Act and the ED under PMLA.

In Mumabi, an ED official said, “We have moved the court seeking NBW against him and the hearing is likely to take place tomorrow.” PTI

Loan fraud case: ED seeks non-bailable warrant against Mallya

Mumbai

In more trouble for beleaguered businessman Vijay Mallya, the Enforcement Directorate today moved the special PMLA court here seeking non-bailable warrant against him in connection with a money laundering probe in the over Rs 900 crore IDBI loan fraud case.

“We have moved the court seeking NBW against him and the hearing is likely to take place tomorrow,” said an ED official.

Government today suspended the passposrt of Mallya, whose Kingfisher Airlines has defaulted on loans of over Rs 9,400 crores and who has been defying Enforcement Directorate summons, and even threatened to revoke it.

The 60-year-old industrialist, who has been in Britain for over a month, had skipped three summonses issued by the agency. He had also sought time till May to depose before the officials.

On April 9, in reply to the last summons, Mallya had informed the Investigating Officer (IO) of the case here that he will be unable to depose personally as scheduled citing the ongoing legal proceedings going in the Supreme Court over settlement of loans.

The agency had issued fresh summons in the first week of April to Mallya asking him to appear on April 9 after he sought two extensions from the earlier dates of March 18 and April 2 citing official reasons.

The officials said that while seeking extension Mallya had informed the ED that cases related to bank loans were currently sub-judice in the Supreme Court and he was trying to settle these loans with the help of his legal and corporate team and, hence, would require some more time.

Mallya was first summoned by the agency to “appear in person” at its office in Mumbai on March 18 but he sought more time citing his prior engagements, following which the agency asked him to depose on April 2.

Mallya was also directed by the Supreme Court to disclose all assets owned by him and his family in India and abroad by April 21.

The liquor baron is reported to be in the UK after he left India on March 2.

The ED has registered a money laundering case against Mallya and others based on an FIR registered last year by the CBI.

The agency is also investigating financial structure of the now defunct Kingfisher Airlines and looking into any payment of kickbacks to secure loans.