In a statement made through his counsel Amit Desai, embattled liquor baron Vijay Mallya has told the Bombay High Court that by declaring him a fugitive economic offender and allowing attachment of his assets, a special court had awarded him a “economic death penalty.” During arguments on his plea challenging several provisions of the Fugitive Economic Offenders Act that came into existence last year, Mallya said, “My debts and the interest on such debts are mounting. I have assets to pay off these debts but the government won't allow the use of these assets to clear the debts. I have no control over my properties.” He added, “This is an economic death penalty that has been awarded to me.”
Desai urged the bench of justices Ranjit More and Bharati Dangre to pass an injunction against the proceedings related to confiscation of his assets across the country. The bench, however, refused to grant any interim relief on the petition. A special court had in January declared Mallya a fugitive economic offender (FEO) under provisions of the Fugitive Economic Offenders Act. Mallya had later approached the high court. Desai argued that the FEO Act was “draconian” and “unconstitutional” as it allowed the Centre to confiscate everything, irrespective of whether a property was bought from the proceeds of a crime or not.
The plea was, however, opposed by the Enforcement Directorate's (ED) counsel DP Singh, who argued that the Act was not draconian at all. Singh said, “This act is not draconian. In fact, this act prohibits prosecuting agencies from acting on their own. For everything, including attachment of properties, we are supposed to get a court order that is passed only after hearing all sides.” The counsel said, “This act is meant for Mallya-like people only. It is not an ordinary legislation. The act has been constituted to bring back defaulters who have defaulted amounts of £10 million and above.” The court too noted that the legislation was a sound one and not draconian. The bench said, “We understand this legislation is a little harsh. But that is because it deals with draconian situations.” It, however, issued a notice to the attorney general to respond to Mallya's plea challenging the act.
'Renewal application' in London court
Meanwhile, Mallya has been allocated July 2 as the date for a brief hearing to convince a High Court judge in London that he should be given permission to proceed to a full-blown appeal process against his extradition to India to face alleged fraud and money laundering charges amounting to £ 900 million. The 63- year- old businessman had filed the “renewal application” earlier this month after he failed in his first written attempt seeking leave to appeal in the high court. The renewal involves a short oral hearing before a high court judge, now scheduled for July 2, where his lawyers will further plead his case against being extradited to India.
A UK court official said, “A date for the oral consideration has been set for July 2.” UK Home Secretary Sajid Javid had signed off a Westminster Magistrates' Court order for Mallya to be extradited to face the Indian courts back in February. Mallya then filed an application for permission to appeal against that decision in the high court, which was refused by Justice William Davis, giving him a week to apply for oral consideration via a renewal application. A UK judiciary spokesperson said, “Once a renewal application is made, it will be listed before a high court judge and dealt with at a hearing.”
