Mallya to again skip ED summons in money laundering case

09 Apr 2016

Beleaguered businessman Vijay Mallya will not be presenting himself before Enforcement Directorate investigators, skipping a summons for the third time today as he sought time till May to depose before it in connection with a money laundering probe in the over Rs900 crore IDBI loan fraud case.

Officials said Mallya has informed the Investigating Officer (IO) of the case in Mumbai that he will be unable to depose personally as scheduled today, citing the ongoing legal proceedings the Supreme Court over the settlement of loans to his failed Kingfisher Airlines.

However, it is understood that the liquor baron has suggested his legal team can help the ED in taking the probe forward.

Sources did not immediately comment as to what next step the agency will take now as he has sought time till May, a request he made to the IO last week too and which was turned down.

''The next action will be decided in due course,'' they said.

The agency had issued a fresh summons last week to Mallya asking him to appear on 9 April after he sought two extensions from the earlier dates of 18 March and 2 April citing official reasons.

Officials had earlier said that the agency has by and large two options in case an accused skips appearance on summons thrice, the maximum time allowed under the Prevention of Money Laundering Act.

The options include revoking his or her passport and / or getting a non-bailable warrant issued.

Officials of the ED had earlier hinted that the April 9 summons could possibly be the last to Mallya.

The IO of the case had allowed his plea to postpone his appearance till now, they said, both on technical and legal grounds.

It is understood that Mallya, while seeking extensions, had informed the IO that cases related to his bank loans were currently sub judice in the Supreme Court and he was trying to settle these loans with the help of his legal and corporate team, and hence would require some more time.

Mallya was first summoned by the agency to ''appear in person'' at its office in Mumbai on 18 March but he sought more time citing his prior engagements, following which the agency asked him to depose on 2 April.

Mallya, who is facing legal proceedings for alleged default of loans and interest worth over Rs9,000 crore from various banks, was also directed by the Supreme Court to disclose all assets owned by him and his family in India and abroad by 21 April.

The Supreme Court also sought to know when he would appear before it.

The directions by the apex court came after a consortium of banks led by the State Bank of India ''unanimously rejected'' his proposal to pay Rs4,000 crore by September towards settlement of his loans.

The Bench agreed with the consortium that Mallya's presence was necessary in the country to show his bona fides and that he was serious about settling his dues.

He is reported to be in the UK after he left India on 2 March.

The ED has registered a money laundering case against Mallya and others based on an FIR registered last year by the Central Bureau of Investigation.

The agency is also investigating financial structure of the now-defunct Kingfisher Airlines and looking into any payment of kickbacks to secure loans.