Businessman Vijay Mallya has been declared a proclaimed offender by a special PMLA court on a plea made by the Enforcement Directorate in connection with its money laundering probe against him in a bank loan default case. Special Judge PR Bhavke said, "The ED application is allowed and proclamation is issued against Vijay Mallya." The ED had moved the court to issue an order under Section 82 CrPC and term the liquor baron a proclaimed offender as he has "multiple" arrest warrants pending against him including a non-bailable warrant under the Prevention of Money Laundering Act.
The agency said there are multiple arrest warrants pending against Mallya in various cases including cheque bounce, and was also wanted in a money laundering case. It told the court about the status of investigations in the case and the need to get Mallya join the probe. As per Section 82 of the CrPC, the court can publish a written proclamation requiring such an accused to appear at a specified time in not less than 30 days from the date of publishing of such a proclamation. Officials said the ED also has the option to seek action under Section 82 pf the CrPC if Mallya does not comply with the proceedings under Section 82.
The agency has been wanting Mallya to join investigations "in person" in its PMLA probe against him and others in the £90 million alleged loan fraud of IDBI bank and has virtually exhausted all legal remedies like seeking an Interpol arrest warrant and getting his passport revoked. It is also in the process of seeking to invoke the India-United Kingdom Mutual Legal Assistance Treat to extradite the former liquor baron from Britain. ED is also looking into the financial structure of Kingfisher Airlines and looking into any payment of kickbacks to secure loans. It attached assets worth £141.1 million of Mallya and one of his companies in connection with its money laundering probe in the bank loan case. The properties include two flats in Bengaluru and Mumbai, residential and commercial structures in UB City and Kingfisher Tower in Bengaluru, spread over 8.4 lakh square feet, and a 4.5 acre industrial plot in Chennai.
The team also attached an account with £3.40 million balance in Laxmi Vilas Bank. Officials said the funds have been deposited in the name of a shell company whose ownership is not clear. While the company's director gets a few thousand rupees salary, the company is believed to be controlled by Mallya. Similarly, a 28.6 acre coffee plantation land in Coorg along with a farmhouse, is allegedly owned by a Mallya-controlled shell company. The ED calculated the value of these properties according to the readyreckoner rate fixed by the government. The attachment is said to be provisional and the adjudicating authority will pass an order after hearing Mallya. If confirmed, the ED will explore auction options.
