Accepting an application made by Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), a special court on Tuesday issued proclamation against beleaguered businessman Vijay Mallya. The ED had moved the special court seeking issuance of proclamation against Mallya in connection with an alleged bank loan default case so that the agency could attach his properties which do not involve proceedings of alleged crime.
Special judge P.R. Bhavake observed, “The ED application is allowed and proclamation is issued against Vijay Mallya.” The agency had moved the court to issue an order under Section 82 CrPC and term the liquor baron a proclaimed offender as he has “multiple” arrest warrants pending against him, including a non-bailable warrant under PMLA.
Advocate Hiten Venegaokar on behalf of the ED argued before the court that the agency has taken all the steps to execute NBW issued against Mallya but he has not been available at any of his addresses.
Advocate Venegaokar also said that they have received information from Mallya’s office and from media reports that he is in United Kingdom. The court was informed that former liquuor baron is aware about the NBW issued against him and he has given an interview to the media but did not appear before the agency and since all efforts to reach him have failed, the court is therefore empowered to issue a proclamation against him.
The ED has started attaching Mallya’s properties because he was disposing them off but now issuance of proclamation would enable them to attach his those properties as well that were not involved in alleged criminal proceedings.
A case of criminal conspiracy and criminal breach of trust, among others, has been registered against Mallya and others in connection with '900 crore of loan sanctioned by IDBI Bank to Kingfisher Airlines Ltd.
The case of ED is that the loan was taken by showing brand value of Kingfisher Airlines, which according to ED has already lost brand value in 2009. Further, though the loan was taken to use this money for Airlines around '430 crore of the loan was used to buy properties in Europe.
There is still a possibility that Mallya may appear before the court within 30 days to defend himself.
