Just like death, law is a great leveller. It does not spare anyone. If you get on the wrong side of law, the long arm of the law is bound to catch you – whether you are a pauper or the King of Good Times.
The Enforcement Directorate has issued summons for appearance to heavily indebted liquor baron Vijay Mallya who left India leaving several banks miffed and moneyless. The summons came as part of the ED’s money laundering probe in the alleged default in payment of £90 million dues to IDBI. The Enforcement Directorate sources said Mallya has been ordered to appear before investigators on March 18.
While the tycoon’s whereabouts are not officially known, he is believed to have shifted to London. It has been reported that he has settled in his Ladywalk estate in Tiwen, near St Albans, Hertfordshire. Reliable sources said he arrived in London, spent a few days at his home near Baker Street and then left for his 30-acre estate which is guarded round-the-clock. Bought from F1 racer Lewis Hamilton’s father, Anthony, locals believe it is one of the best homes in the village.
“The summons has been issued to Mallya under provisions of the Prevention of Money Laundering Act in connection with the IDBI case,” official sources said.
Mallya has also been asked to furnish documents related to his personal finances. ED investigators also questioned former Chief Financial Officer of the grounded Kingfisher Airlines (KFA), A Raghunathan, who has blamed Mallya for the financial crisis that befell KFA and said he only worked as per the directions from the latter.
Vijay Mallya is in the centre of a hotch-potch as he finds himself hounded by banks, the government, and the media. Under fire over dues of Kingfisher Airlines in unpaid loans and interest, Mallya left the country on March 2. The news came only after a 17-bank consortium moved the Apex Court to prevent him from leaving the country.
Meanwhile, in an interview with Sunday Guardian, the businessman said, “I do not feel the time is right to return to India. I feel passions are high. People need to think rationally,” hinting that he may not even choose to return at all.
Despite being cornered and facing the worst crisis of his life, Mallya – putting up a brave face, with a bit of the Dunkirk spirit – said that loan defaults are a business matter and banks give out loans knowing the risk involved. “They decide, we don’t. Our own business was flourishing, but plummeted suddenly. Don’t make me the villain. I have the best intentions. I’m quiet because I fear my words will be twisted like of others.”
He, however, later chose to deny even participating in the interview. He tweeted, “Shocked to see media statements that I gave an interview to Sunday Guardian without verification. I have not given any statement to anyone.” To which a journalist from the paper replied, “We stand by the Vijay Mallya interview in the @SundayGuardian and we will be putting up the email trail that culminated in his interview.” The paper indeed released an email trail refuting Mallya’s claims.
Simultaneously, back in India, the Hyderabad court has issued a non-bailable warrant (NBW) against him in connection with the alleged dishonour of a cheque of Rs 5,000,000 to GMR Hyderabad International Airports Ltd. The 14th Additional Chief Metropolitan Magistrate Court had issued four NBWs on March 10 against Mallya and another senior official of the company.
GMR counsel G Ashok Reddy said, “He and others were supposed to appear before the court on March 10. They did not appear... Hence, court issued NBW order which has to be executed by 13 April.”
Last week Mallya claimed that he was pursuing a one-time settlement with the lenders of his airlines by paying 50% of the £900 million dues, soon negated by the banks. Mallya said that banks have already recovered £249.40 million and that he was making efforts to reach a one-time settlement with them. The total exposure of banks to Kingfisher Airlines was around £700 million as of 2014. Since then, banks have sold £124.40 million worth of United Breweries shares.
A chief of a bank said, “Till date, we have not received any concrete offer for a settlement from Mallya.” (The report has appeared in Times Of India on 11, March 2016). Bankers said a one-time settlement which usually includes a waiver would be difficult as most of the lenders belong to the public sector. An official with a bank with an £80 million exposure said, “Given that Mallya is now declared a wilful defaulter and that the investigative agencies are now involved, I expect that recoveries can only take place through a court order and a process involving auction of assets.”
SBI Caps Trustee Company will auction the airlines’ erstwhile headquarters ‘Kingfisher House’, situated near the Mumbai Airport, on March 17.
