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Court seeks Vijay Mallya's response on ED plea

ED Public Prosecutor NK Matta moved the application last week before Chief Metropolitan Magistrate Sumit Das that also sought the issuance of a non-bailable warrant to secure his presence for the remainder of the the 16-year-old trial.

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A Delhi court on Monday issued notice to liquor baron Vijay Mallya in response to a plea filed by the Enforcement Directorate (ED) recalling its order granting exemption from appearance in a case alleged violation of foreign exchange rules. Mallya has also been evading summons in a separate money laundering case investigated against him by the ED as he is reported to be in the United Kingdom.

ED Public Prosecutor NK Matta moved the application last week before Chief Metropolitan Magistrate Sumit Das that also sought the issuance of a non-bailable warrant to secure his presence for the remainder of the the 16-year-old trial.

"In view of the above, it is most respectfully prayed that this court may be pleased to withdraw the exemption given from the personal appearance of the accused and may be pleased to issue non-bailable warrant to secure the presence of the accused, in the on going trial," the ED stated in its application.

The ED filed a complaint under section 56 of the erstwhile Foreign Exchange Regulation Act (FERA) on March 8, 2000 when Mallya ignored summons issued by the ED. The court granted Mallya exemption from personal appearance on December 12 the same year. The court is currently hearing the final arguments in this case that accuses Mallya of violation of the provisions of FERA in arranging funds to advertise his company's liquor products abroad.

After hearing the prosecutor's plea, CMM Das issued notice to Mallya's counsel on Monday and sought his reply before May 20.

The ED has accused Mallya of allegedly paying $200,000 to a London-based firm Benetton Formula Ltd for promotion of the Kingfisher brand abroad. According to ED, Mallya had paid this amount to the British firm for displaying the Kingfisher logo during the Formula One World Championships in London and some European countries in the years 1996-1998. ED stated the money was allegedly paid without prior approval from the Reserve Bank of India in violation of FERA norms.

After a protracted legal battle, on November 23, 2015, the State Bank of India (SBI) tagged Mallya and two of his companies as wilful defaulters after they failed to clear loans given to the long-grounded Kingfisher Airlines. Mallya owes a consortium of banks led by the SBI dues to the tune of Rs.9,000 crores.

Despite a lookout notice circulated by the Central Bureau of Investigation (CBI), to all the airports, Mallya evaded authorites and left the country for the United Kingdom on March 2, 2016.
 

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