Vijay Mallya is facing a multi-agency probe. (PTI photo)
New Delhi:
The government has cracked the whip on liquor baron and lawmaker Vijay Mallya by suspending his diplomatic passport after a request from the Enforcement Directorate or ED which is probing alleged non-repayment of loans by him.
The move comes at a time when the government is trying to send out the message that it will deal firmly with wilful defaulters.
A top official said, "The government is seriously concerned about the misappropriation of public funds of the banks by the wilful defaulters and fraudsters. And that's why it has asked all investigating agencies - Central Bureau of Investigation (CBI), ED and Serious Fraud Investigation Office[SFIO] to vigorously follow such cases and to take prompt legal action against the culprits and to recover the public funds."
An ED investigator told NDTV, "Kingfishers Airlines is a wilful defaulter. It has dues as on 29.02.2016 to the tune of Rs.9432 crores and has wilfully defaulted to pay back to the consortium of 13 banks."
A senior official in the finance ministry defended the ED's decision to make Mr Mallya liable for the default by his company. "As Chairman he was instrumental in taking the important decisions pertaining to the affairs of the company including getting the loan for M/s Kingfishers Airlines Ltd. from the consortium of 13 banks," he explained.
Mr Mallya is facing a multi-agency probe. The ED is investigating money laundering charges, the CBI criminal misappropriation, criminal conspiracy and corruption charges. The SFIO is looking into alleged violations under the Companies Act.
During the course of the investigations, the ED asked Mr. Mallya to join investigations thrice since March 10. After he ignored the summons thrice, ED officially summed up that he was "deliberately avoiding personal appearance" despite the statutory requirement of appearing before them. Each time, he responded by saying he could only present himself before the agency in May.
His failure to appear before the investigating authority under the money laundering law amounts to "wilful non-compliance to legal process," a top source said.
The government finally moved against him because despite mounting political and judicial pressure, Mr Mallya had refused to show up.
The move comes at a time when the government is trying to send out the message that it will deal firmly with wilful defaulters.
A top official said, "The government is seriously concerned about the misappropriation of public funds of the banks by the wilful defaulters and fraudsters. And that's why it has asked all investigating agencies - Central Bureau of Investigation (CBI), ED and Serious Fraud Investigation Office[SFIO] to vigorously follow such cases and to take prompt legal action against the culprits and to recover the public funds."
An ED investigator told NDTV, "Kingfishers Airlines is a wilful defaulter. It has dues as on 29.02.2016 to the tune of Rs.9432 crores and has wilfully defaulted to pay back to the consortium of 13 banks."
A senior official in the finance ministry defended the ED's decision to make Mr Mallya liable for the default by his company. "As Chairman he was instrumental in taking the important decisions pertaining to the affairs of the company including getting the loan for M/s Kingfishers Airlines Ltd. from the consortium of 13 banks," he explained.
Mr Mallya is facing a multi-agency probe. The ED is investigating money laundering charges, the CBI criminal misappropriation, criminal conspiracy and corruption charges. The SFIO is looking into alleged violations under the Companies Act.
During the course of the investigations, the ED asked Mr. Mallya to join investigations thrice since March 10. After he ignored the summons thrice, ED officially summed up that he was "deliberately avoiding personal appearance" despite the statutory requirement of appearing before them. Each time, he responded by saying he could only present himself before the agency in May.
His failure to appear before the investigating authority under the money laundering law amounts to "wilful non-compliance to legal process," a top source said.
The government finally moved against him because despite mounting political and judicial pressure, Mr Mallya had refused to show up.
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