Twitter
Advertisement

In cat-and-mouse chase, Indian sleuths close in on Mallya

Latest arrest warrant against the Indian fugitive in the UK in a special Prevention of Money Laundering Act (PMLA) court strengthens government' extradition case

Latest News
article-main
Vijay Mallya
FacebookTwitterWhatsappLinkedin

In the catch-me-if-you-can game, the Indian government scored points over billionaire fugitive Vijay Mallya as it managed to secure a non-bailable warrant in a special Prevention of Money Laundering Act (PMLA) court against the owner of the collapsed Kingfisher Airlines on Wednesday.

Legal eagles with expertise in international law believe the latest development will strengthen the government's extradition case against Mallya in a United Kingdom (UK) court.

"The bank-debt case is hopeless but if there is evidence of money laundering, and money trail is established then it is considered a criminal offence. It (money laundering) is also a criminal offence here (UK). For extradition, the Indian government will have to prove that he (Mallya) had committed a crime for which he is required to be in India for a trial," said Sarosh Zaiwala, founder of London-based law firm Zaiwala & Co.

The arrest warrant for flamboyant Indian businessman was issued in the Rs 950-crore money laundering case for which a charge-sheet was filed by the Enforcement Directorate (ED) on last month, naming nine accused. The agency has alleged that there were many violations of banking and industry norms in loan transaction between Mallya's airline, which was wound down in 2014, and IDBI Bank.

In the case, the ED is trying to establish that bank officials and Mallya were allegedly hands-in-glove to defraud the bank and that the later has allegedly diverted part of the funds disbursed by the bank to entities other than Kingfisher Airlines.

Zaiwala said that evidence submitted under the Indian law will have to be proven as fact in the English court; "the Indian government will have to prove it as a fact that it is a crime."

In fact, the London-based lawyer believes that instead of extradition case the government should pursue a case of a worldwide asset freezing order against Mallya.

"What the Indian government ought to have done is to go for a worldwide asset freezing order against Mallya. He is living in England and the English court will have jurisdiction and freeze every asset so that he can't spend any money," recommended Zaiwala.

He said it would be more effective for the government to make Mallya file an affidavit on his direct and indirect interests in assets all over the world within a specified period; "and if he is found to have lied he can go to jail in England and, in my view, that would be the best remedy".

According to him, taking the course of the worldwide asset-freezing injunction would be a quicker way out compared to the long drawn legal battle in the extradition case.

He also fears Mallya may try to prove to the court that it was "political trial" and he may not get a fair trial in India; "that is something which the court can take into consideration. He will try to make all sorts of allegations".

Sunil Magan, senior lawyer in Delhi High Court, however, believes that a worldwide asset freeze order may not get Mallya back for a trial in the legal cases against him in the country, which is the primary objective of the investigative agencies.

"The Indian government has taken the best course (extradition case) available. Disclosing of assets will only reveal his (Mallya's) assets. The government knows about most of his assets," said the Delhi-based lawyer.

According to him, decrees and awards in legal cases in India are recognisable in UK courts.

"UK recognises all the awards and decrees of Indian courts and vis-e-versa. The quantum of punishment may differ. This may be termed as a white collar offence. It's an economic offence and economic offence does not have any ramification on drug or arms trade, etc and so may not call for extradition or something like that so easily," he said.

"Though, I have no doubt about the sincerity of this government in so far pursuing the matter or their intention of bringing him back to India for trial," Magan further added.

NOOSE TIGHTENS

  • International legal eagles believe the latest development will strengthen the government’s extradition case
     
  • ED is trying to establish that bank officials and Mallya were hands-in-glove to defraud the bank
Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement