CBI issues non-bailable warrant against Mallya in loan default case
What's the story
A special court in Mumbai has issued a non-bailable warrant (NBW) against businessman Vijay Mallya, in connection with a ₹180-crore loan default case linked to Indian Overseas Bank (IOB).
The detailed order was made available on Monday.
Citing other NBWs and Mallya's status as a "fugitive," the court stated that "this is a fit case to issue an open-ended NBW against him to secure his presence."
Case details
Mallya accused of causing wrongful loss to IOB
The Central Bureau of Investigation (CBI), which is investigating the case, alleges that Mallya, the promoter of the now-defunct Kingfisher Airlines, "wilfully" defaulted on payments causing a wrongful loss of more than ₹180 crore to IOB.
The businessman, already declared a fugitive economic offender in a money laundering case by the Enforcement Directorate (ED), currently resides in London.
The Indian government is actively seeking his extradition.
Loan misuse
Allegations of loan diversion and default against Mallya
The warrant against Mallya is related to a cheating case registered by the CBI for alleged diversion of loans availed by Kingfisher Airlines from IOB between 2007 and 2012.
The chargesheet filed by the central agency claims that Mallya "wilfully" defaulted on repayment obligations under the loans, causing a wrongful loss of ₹141.91 crore due to default on loans.
An additional wrongful loss of ₹38.30 crore was allegedly caused due to conversion of loans to shares.
Court proceedings
Court summons Mallya and other accused
Following the chargesheet, the CBI court issued summons against Mallya and five other accused in the case.
However, the CBI pressed for issuance of an NBW against Mallya, stating "the accused is a fugitive and an absconder."
The court agreed with the CBI's submission, observing that Mallya has absconded, been declared a fugitive, and has pending NBWs for execution against him in other cases.
Fugitive status
Mallya's history as a fugitive economic offender
Mallya was declared a Fugitive Economic Offender in January 2019 by a special court for cases under the Prevention of Money Laundering Act (PMLA).
He is accused of defaulting on multiple loan repayments and money laundering.
The businessman left India in March 2016 and has been residing in London since then.