MUMBAI: The Bombay High Court on Thursday directed fugitive businessman Vijay Mallya to clarify when he intends to return to India, stating that it was granting him “one more opportunity” before passing orders for non-compliance.
The remarks were made during the hearing of a petition filed by the liquor baron challenging his status as a fugitive economic offender. The former MP has questioned the constitutional validity of certain provisions of the Fugitive Economic Offenders (FEO) Act, under which he was designated a fugitive, and has sought various reliefs.
A division bench of chief justice Shree Chandrashekhar and justice Gautam Ankhad reiterated the court’s earlier position that it will hear his petition only after he returns to India. In December last year, the court had made it clear that it would not hear his challenge to the FEO Act unless he first submitted to its jurisdiction. Mallya left India in 2016, shortly after his now-defunct Kingfisher Airlines defaulted on large loans from Indian banks.
During the hearing on Thursday, the division bench noted that Mallya had failed to submit a clarification on his return. It said the parties should not take advantage of the pendency of the petition and should not seek further adjournments in the matter. “You (Mallya) have to come back if you want to prosecute this,” the bench said.
Solicitor general Tushar Mehta, additional solicitor general Anil Singh, and advocate Adarsh Vyas, appearing for the Centre, told the court that the fugitive businessman could not question the validity of Indian law and, at the same time, seek relief in the high court.
“He has filed this petition challenging the FEO Act after being declared a fugitive,” Mehta said. “He cannot not trust the law of the country and invoke the equity law of the country”, Mehta said. He also questioned the timing of the petition, stating that the authorities have initiated his extradition process.
“This could be my assumption that, after having realised that he will be extradited, Mallya has filed the petition challenging the proceedings here. He left the country many years back. The choice of filing this petition at this point is also telling,” Mehta added.
The court held that it will have to pass an order in the matter on account of non-compliance after considering an appropriate course of action if its directions are not followed. “There is no scope for argument in this. This is only for compliance. We’ll have to pass an order. If you don’t follow the orders, we’ll see what to do,” the bench said, before posting the matter for further hearing on February 16.
Mallya has been facing multiple legal cases in India related to alleged loan defaults, fraud, money laundering and financial irregularities in connection with those loans. In July 2015, the Banking Securities & Fraud Cell of the Central Bureau of Investigation had registered an FIR against him in connection with alleged irregularities in loans taken by Kingfisher Airlines from a consortium of banks led by IDBI Bank. He was charged with criminal conspiracy, criminal breach of trust and criminal misconduct.
Mallya left India in March 2016 amid mounting legal pressure and has remained in the United Kingdom since then. He has been resisting extradition to India to face criminal charges. After the enactment of the FEO Act in 2018, proceedings were initiated against Mallya under the law, prompting him to file a petition in the high court.