Bombay High Court Seeks ED Update on Vijay Mallya's Asset Recovery Plea

The Bombay High Court has requested the Enforcement Directorate (ED) to provide an affidavit clarifying the status of asset recovery related to businessman Vijay Mallya. The court observed that the protracted dispute over recovering dues from Mallya should be brought to a close.

What Happened

During a hearing, Mallya's lawyer, Amit Desai, informed the court that a 2020 petition filed by Mallya challenging asset seizures had become redundant. The petition was originally filed when settlement talks were ongoing and sought protection for certain assets. However, Desai argued that most of the assets in question have since been attached and dealt with, rendering the petition obsolete. Justice Jadhav remarked on the need to "move on" to prevent negative impacts on the country's economy and relations. The court directed the ED to confirm if the settlement process is concluded, while emphasizing that criminal proceedings against Mallya would continue independently.

Background

Vijay Mallya left India in March 2016 amidst escalating legal challenges and has resided in the United Kingdom since. His 2020 petition had contested an order from a special Prevention of Money Laundering Act (PMLA) court that permitted a consortium of banks, led by the State Bank of India (SBI), to use confiscated assets for debt recovery. Mallya was declared a fugitive economic offender in January 2019 and faces multiple legal cases in India concerning alleged loan defaults, fraud, money laundering, and financial irregularities. An FIR was registered against him in July 2015 by the Central Bureau of Investigation for alleged irregularities in loans taken by Kingfisher Airlines from IDBI Bank. Despite UK courts approving his extradition, Mallya has remained in the UK, reportedly due to a confidential legal matter, often understood as an asylum application.

Key Facts

• The Bombay High Court requested the Enforcement Directorate (ED) to clarify the status of Vijay Mallya's 2020 petition regarding asset seizures.
• Mallya's lawyer stated that the 2020 petition is now redundant due to subsequent developments.
• Justice Jadhav suggested the dispute needed to be concluded to avoid harm to national relations and the economy.
• Banks reportedly recovered around ₹15,000 crore against original claimed dues of ₹6,203.35 crore plus interest.
• Mallya left India in March 2016 and has been in the United Kingdom since then.
• He was declared a fugitive economic offender in January 2019.

What Happens Next

The High Court will determine the next steps after reviewing the ED's affidavit. The court indicated that this process would not affect the ongoing criminal prosecution against Vijay Mallya.