Court Issues Non-Bailable Warrant Against Vijay Mallya in Rs 180-Crore Loan Default Case

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Fugitive Businessman Faces New Legal Troubles

A special court in Mumbai has issued a non-bailable warrant against fugitive businessman Vijay Mallya in connection with a Rs 180-crore loan default case involving Indian Overseas Bank (IOB). The order, issued by special CBI court judge SP Naik Nimbalkar on June 29, was made public on Monday. The court underscored Mallya’s status as a “fugitive” and cited previous non-bailable warrants against him based on submissions from the Central Bureau of Investigation (CBI). The judge stated, “This is a fit case to issue an open-ended NBW against him to secure his presence.”

CBI Alleges Rs 180 Crore Loss to Indian Overseas Bank

The Central Bureau of Investigation (CBI) has alleged that Vijay Mallya, the promoter of the now-defunct Kingfisher Airlines, caused a wrongful loss of over Rs 180 crore to IOB by deliberately defaulting on loan repayments. Mallya, currently residing in London, has already been declared a fugitive economic offender in a separate money laundering case under investigation by the Enforcement Directorate (ED). The Indian government is actively seeking his extradition from the United Kingdom. This latest warrant is related to a cheating case filed by the CBI, which involves the alleged misappropriation of loans obtained by Kingfisher Airlines from IOB between 2007 and 2012.

Details from the CBI Chargesheet

According to a chargesheet recently filed by the CBI, the credit facilities in question were provided to Kingfisher Airlines under an agreement with IOB. In August 2010, the Reserve Bank of India (RBI) directed the complainant bank, State Bank of India (SBI), to consider Kingfisher Airlines’ proposal for restructuring existing facilities by relaxing guidelines as a one-time measure for the aviation sector. The restructuring was done under a Master Debt Recast Agreement (MDRA) signed between Kingfisher Airlines and a consortium of 18 banks, including IOB.

Loan Diversion and Financial Loss

The CBI has accused Kingfisher Airlines of diverting the loans for purposes other than those agreed upon, causing a loss of Rs 180 crore to IOB. The chargesheet claims that the accused, with the intent to cheat, dishonestly defaulted on repayment obligations, resulting in a wrongful loss of Rs 141.91 crore due to loan defaults. Additionally, an extra loss of Rs 38.30 crore was incurred due to the conversion of loans into shares. The investigation revealed that false promises were made by Kingfisher Airlines, and the loans were misused, contributing significantly to the financial loss faced by the banks involved.

Court Summons Mallya and Other Accused

In response to the chargesheet, the CBI court has issued summonses to Vijay Mallya and five other accused in the case. The CBI pressed for a non-bailable warrant against Mallya, arguing that he is a “fugitive and an absconder.” The CBI’s plea highlighted Mallya’s history of evading legal proceedings and his current residence in England, where he “continues to subvert the process of law in India.” Given Mallya’s fugitive status and the pending non-bailable warrants in other cases, the court determined that issuing a summons would be ineffective. The court stated that no purpose would be served by issuing a process (summons) to him.

Background on Vijay Mallya’s Legal Issues

Vijay Mallya, once a prominent businessman in India, has faced multiple legal battles over financial misconduct and loan defaults. He has been a controversial figure in the business world, particularly due to the financial collapse of Kingfisher Airlines, which left a trail of unpaid debts and legal complications. His status as a fugitive has complicated efforts to bring him to justice in India, where he faces numerous charges, including fraud and money laundering. The Indian government has been actively working to extradite him from the UK to face trial in India.

Mallya’s Continuing Legal Challenges

The issuance of a non-bailable warrant in the Rs 180-crore loan default case marks another chapter in Vijay Mallya’s ongoing legal saga. The Indian authorities remain committed to pursuing justice and holding Mallya accountable for his alleged financial crimes. As efforts to extradite him continue, Mallya’s legal troubles are far from over, and his return to India to face trial remains a key objective for the Indian legal system.

 

(With inputs from agencies)

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