Vijay Mallya can’t use pendency of plea to stall cases abroad, says SC

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Published: January 7, 2020 6:00:06 AM

“Mallya has been hanging the carrot of settlement before the SBI-led bank consortium from whom loans were taken. Not a single rupee has come. SBI has filed insolvency proceedings against Mallya in London court. Hearing is concluded. Now, he has said a proposal is pending before the SC here… So, the UK court is waiting,” the SG said.

 

Vijay Mallya, pendency of plea, SC, SA Bobde, SBI, india news,CJI Vijay Mallya

The Supreme Court on Monday restrained fugitive businessman Vijay Mallya from using pendency of recovery proceedings in the Indian courts to stall legal proceedings “anywhere else in the world”.

The clarification came after Solicitor General Tushar Mehta informed a Bench led by Chief Justice SA Bobde that the insolvency proceedings initiated by SBI against Mallya in a UK court are pending and Mallya had sought a stay on pronouncement of the judgment on the ground that the issue of repayment is pending before the SC.

“Mallya has been hanging the carrot of settlement before the SBI-led bank consortium from whom loans were taken. Not a single rupee has come. SBI has filed insolvency proceedings against Mallya in London court. Hearing is concluded. Now, he has said a proposal is pending before the SC here… So, the UK court is waiting,” the SG said.

Mehta further sought clarification from the Bench the pendency of any case in India would not affect proceedings in the UK court, he said. While Mallya’s lawyer Mahesh Agarwal sought an adjournment, the CJI said an adjournment would be given subject to Mallya not using the issue of pendency of his case in the apex court as a cause for stalling proceedings “anywhere in the world”.

The matter has been posted for hearing on Friday. The fugitive businessman had last year moved the apex court against the confiscation of his and his relatives’ properties. The business tycoon, who is facing extradition proceedings in UK, in his appeal against April 24 order of the Bombay HC that refused stay on the procedure for the confiscation of his properties by government agencies, said he wanted attachment of only those properties which are related to Kingfisher Airlines. He has also questioned the power conferred on ED under Fugitive Economic Offenders Act, 2018, for confiscation of all properties of a fugitive economic offender without assessing whether or not the properties under confiscation were tainted or part of the alleged proceeds of crime.

An SBI-led consortium of banks had in 2016 filed an appeal seeking recovery of around Rs 9,000 crore from Mallya, who fled India in March 2016 and has been living in the UK since then.

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