Facing expulsion Mallya quits RS

Wednesday 04th May 2016 06:39 EDT
 
 

Vijay Mallya, who was facing action for defaulting on loans of £940 million and facing imminent expulsion from the Rajya Sabha, resigned his membership from the Upper House. The ethics committee of the Upper House was to meet on Tuesday to expel Mallya from the House. The decision was taken last week and the businessman was given a week to reply.

In his resignation letter to Rajya Sabha chairman Hamid Ansari, Mallya tried to take the moral high ground and presented himself as someone being deliberately wronged. He denied the charges against him as false and baseless. “I am shocked that the department of financial services, ministry of finance, government of India has provided factually wrong information to a Parliament committee,” he said.

Mallya said he did not want his “name and reputation to be further dragged in the mud. And since recent events suggest that I will not get a fair trial or justice, I am hereby resigning as a member of the Rajya Sabha with immediate effect,” Mallya said. He said he had separately written to Karan Singh, chairperson of the ethics committee. Mallya's term was to get over on July 1.

Mallya thanked Ansari and his “colleagues in the House for all the cooperation” that he received during his two terms.

He said he received a letter from Karan Singh stating that the Rajya Sabha chairman had referred an issue to the ethics committee regarding “purported default” by Mallya in the “repayment of bank loans,” which have “not been reflected” in his declaration of assets and liabilities. Mallya said the letter further stated that in a meeting “purportedly held” on April 25, the ethics committee unanimously felt that he should be expelled.

I have no plans to leave Britain, Mallya

Two months after his arrival in Britain, Mallya spoke out about his “forced exile” saying he has no plans to leave Britain.

Speaking to the Financial Times, the first time he directly addressed the issue, Mallya said he wants a “reasonable” settlement with the banks. “We have always been in dialogue with banks saying 'We wish to settle.' But we wish to settle at a reasonable number that we can afford and banks can justify on the basis of settlements done before.” Reacting to India revoking his passport, the liquor tycoon said, “By taking my passport or arresting me, they are not getting any money.” Denying any wrongdoing, Mallya said, “I am absolutely not guilty of any of these preposterous charges of diverting funds from Kingfisher, buying properties or stuff like that.”

The Indian government has written to the United Kingdom asking for the deportation of Vijay Mallya. They have cited the revocation of his passport and the non-bailable warrant issued against him. The Ministry of External Affairs also emphasised that India will continue to pursue Mallya's deportation matter with the UK authorities. Ministry spokesperson Vikas Swarup said, “The ministry has written to the High Commission of the UK in Delhi requesting the deportation of Vijay Mallya so that his presence can be secured for investigations against him under the Prevention of Money Laundering Act 2002.” He added that the Indian High Commission in the UK will also be issuing a similar note verbale to the UK Foreign and Commonwealth Office.

“Mallya's passport was revoked last week in view of these (PMLA) investigations and non-bailable warrant issued by the Special Judge, Mumbai. We will continue to pursue this matter with UK authorities,” Swarup said.

Meanwhile, the Enforcement Directorate and the Central Bureau of Investigation are looking at around 40 companies in which he is said to have a stake, directly or indirectly. Most of the listed companies are based abroad, in the Netherlands, UK, South Africa, China and Nepal. It is reckoned the money Mallya embezzled from bank loans was routed to these offshore organisations. It was also found out that Mallya owns a large number of immovable properties in many countries, and the case in under investigation.

“The worth of properties owned by him, including some palatial houses and his shares in the companies is being estimated,” said a source. “We also have information and details of his movable properties, including his yacht and vehicles in some of these countries. We need to question him about his investments in many companies, but since he has refused to join the probe, we are gathering evidence through different channels and taking assistance from agencies abroad,” said an ED official.




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