Vijay Mallya continues to evade Indian law: ED

Mumbai: Former liquor magnate Vijay Mallya continues to avoid Indian legal proceedings and the recovery of debts by banks does not exonerate him from money laundering charges, according to the Enforcement Directorate (ED). On September 8, the ED filed an affidavit in response to a petition from Mallya, filed in 2020, requesting the termination of the criminal cases against him.

He claimed his dispute with banks was resolved once debts were recovered. The ED stated that properties worth Rs 14,131.6 crore were transferred to a consortium led by State Bank of India (SBI), but this action does not result in the dismissal of the money laundering charges. Mallya left India in March 2016 and failed to appear before authorities despite multiple summons, according to the ED.

In November 2016, he was labeled a proclaimed offender. The businessman remains evasive, having failed to return to India or comply with court orders. The ED emphasized that despite inquiries about his intentions to return and submit to Indian legal jurisdiction, Mallya has continued to avoid the process. The criminal prosecution under the Prevention of Money Laundering Act (PMLA) is not invalidated simply because banks have recovered significant assets from the properties returned to them.

The ED clarified that Mallya is accused of money laundering and misappropriating around Rs 3,500 crore from a loan of Rs 9,000 crore given to his defunct airline, Kingfisher Airlines. The ED had initially attached Mallya's properties in 2016, and in 2019, a special court allowed banks to utilize his movable assets to recover the debt.