Mumbai Court issues non-bailable warrant against Vijay Mallya

A special court in Mumbai handling CBI cases recently issued a non-bailable warrant (NBW) to arrest former owner of Kingfisher Airlines and fugitive businessman Vijay Mallya in connection with a ₹180-crore loan default case [Central Bureau of Investigation v. Vijay Vittal Mallya and Others]..After taking note that there were various other NBWs issued against Mallya and also considering his status as a 'fugitive', Special Judge SP Naik Nimbalkar opined that it was necessary to issue an open-ended NBW against Mallya to ensure his presence."The NBWs (referring to earlier warrants issued) are yet pending for execution. It leads to the inference that, the accused has evaded the process of law and was declared as Fugitive Economic Offender. Resultantly, in such a scenario, no purpose would be served by issuing process in the form of summons against accused no.1. As accused no.1 Vijay Mallya has absconded, declared as fugitive and NBWs are pending for execution against him in other cases, this is a fit case to issue open ended NBW against accused no.1 Vijay Mallya for securing his presence," the court said, in its June 29 order..The order was passed on an application by the Central Bureau of Investigation (CBI).The CBI had argued that between 2007 and 2012, Mallya intentionally defaulted on loan payments, resulting in losses of over ₹180 crore for the government-run Indian Overseas Bank (IOB).In 2016, a case was registered in the matter by the CBI against Mallya under Section 120B (criminal conspiracy) read with Section 420 (cheating) of the Indian Penal Code, 1860 (IPC) and Section 13(2) read with Section13(1)(d) of Prevention of Corruption Act, 1988.The CBI argued that Mallya has deliberately evaded the process of law. It therefore urged the special court to issue an NBW for the arrest of Mallya..Taking note of Mallya's repeated absence and status as a fugitive economic offender, the the special court deemed it appropriate to issue an open-ended NBW to ensure his attendance..Earlier, the Supreme Court had held Mallya guilty of contempt of court in 2017 for willfully disobeying its orders in a petition filed by a consortium of creditors led by the State Bank of India (SBI). Mallya was alleged to have transferred funds into the accounts of other persons in violation of the Court's orders, in addition to making "vague and unclear" disclosures about his assets.The banks had alleged that Mallya concealed facts and diverted the money to his son Siddharth Mallya and daughters Leanna and Tanya Mallya in “flagrant violation” of the orders passed by the Karnataka High Court.In August 2020, the apex court dismissed a review petition filed by Mallya against the 2017 judgment.Mallya was also directed to be present before the Court for the hearing on his sentencing, but he had failed to do so, considering he had already left India by the time.Subsequently, the Union Ministry of External Affairs told the Supreme Court that the extradition of Mallya has not been given effect due to some "secret proceedings" initiated against him in the United Kingdom.The top court eventually proceeded to hear the matter without Mallya..In July 2022, the Supreme Court sentenced the fugitive industrialist to four months of imprisonment and a ₹2,000 fine in the matter.A Bench of Justices Uday Umesh Lalit, S Ravindra Bhat and PS Narasimha also directed the Union Home Ministry to secure Mallya's presence so that he may serve out his prison sentence.The Court further directed Mallya to deposit 40 million USD with interest within four weeks, failing which the authorities were given liberty to take any step towards the recovery of the amount.The Court had explained that these punishments were imposed as Mallya "never showed any remorse", nor did he tender any apology for his conduct..Special Public Prosecutor DP Singh appeared for the CBI before the special court which issued the NBW against Mallya..[Read Order]