Court reserves order on NBW against Vijay Mallya

A special Prevention of Money Laundering Act (PMLA) court in Mumbai on Saturday reserved its order on an application filed by Enforcement Directorate (ED) seeking issuance of a non-bailable warrant against beleaguered businessman Vijay Mallya till April 18.

Advocate Hiten Venegaokar, on behalf of the ED, told the court that it has registered a case of criminal conspiracy and criminal breach of trust, etc., against Mallya and other in connection with Rs 900 crore of loan sanctioned by IDBI Bank to Kingfisher Airlines Ltd.

The ED’s case is that the loan was taken by showing the brand value of Kingfisher Airlines, which according to the ED has already lost brand value in 2009. Mr Venegaokar told the special judge P.R. Bhavake that apart from the ED, the CBI has also registered a case against Mallya and during investigations they have found that though the loan was taken for the airlines, around Rs 430 crore out of the Rs 900 crore loan was used to buy properties in Europe.

Mr Venegaokar contended that the ED had already issued three summonses to Mallya and he had replied to them seeking more time to appear before the investigating agency. It was argued before the court that the replies from Mallya show that he has received summons issued to him but instead of coming before the ED he was seeking more time and he wanted the investigation to be done as per his convenience. The lawyer also told the court that for the last summons the ED got a reply from Mallya seeking time till May 30 to appear before it. In response to summons asking his presence on April 2, Mallya replied he was in active negotiations with various European entities for honouring his offer of one-time settlement with the consortium of banks, which had given loans to Kingfisher Airline Ltd and as such, he was required to remain in Europe to achieve this crucial objective.

Mr Venegaokar argued that as per a Supreme Court order in another matter, the investigation could not be done as per convenience of the accused. He said the ED could find the money trail if he does not come but in that case, “We have apprehension he would dispose off his properties and money that he has parked abroad, due to which we would not be able to get the money back and the proceeds of the crime.”

He said that as per replies sent by Mallya, he wanted the ED to question him through e-mail and video conferencing, which is not possible as the matter is crucial and there is a possibility of tempering or destroying of evidence.