BackNow, Vijay Mallya faces non-bailable warrant in Hyderabad court
Order against Vijay Mallya relates to alleged dishonouring of Rs50 lakh cheque to GMR Hyderabad International Airport
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A Hyderabad court has issued a non-bailable warrant against former UB Group chairman Vijay Mallya, who left the country on 2 March, even as the businessman said the time is not right for his return.
The Press Trust of India, which reported the development, said the case relates to a ₹ 50 lakh cheque issued by Mallya’s defunct Kingfisher Airlines to GMR Hyderabad International Airport Ltd that was dishonoured. Counsel for GMR, which moved a local court in Hyderabad, said the warrant was issued after Mallya failed to appear in court on 10 March.
The agency reported Mallya’s counsel as saying that he will move the high court to get the warrant quashed. The warrant must be executed by 13 April.
Meanwhile, Mallya, who has not revealed his whereabouts, said in an interview that appeared in Delhi-based Sunday Guardian, “I am an Indian to the core. Of course I want to return. But I’m not sure I’ll get a fair chance to present my side. I’ve already been branded as criminal. I do not feel the time is right. I feel passions are high. People need to think rationally. They need to understand that business, whether large or small, has risks involved."
Ironically, the interview appeared on a day when Mallya tweeted that he does not want to speak to media.
“I am being hunted down by media in UK. Sadly, they did not look in the obvious place. I will not speak to media so don’t waste your efforts," Mallya tweeted earlier on Sunday.
He did not elaborate on the “obvious place" he mentioned.
Mallya told the newspaper that he has seen the highest to the lowest points in this matter, adding, “but I hope that I return one day. India has given me everything. It made me Vijay Mallya."
Mallya said he never hidden any aspect about his life and he has been forced to go into hiding, making him “sick". Asked about leaving the country, he said he left from Delhi for a personal visit with a friend and it wasn’t a business visit.
“Why am I being portrayed as a criminal now? Loan defaults are a business matter. When the banks give out loans, they know the risk involved. They decide, we don’t. Our own business was flourishing, but plummeted suddenly. Don’t make me the villain. I have the best intentions. I’m quiet because I fear my words will be twisted like those of others," Mallya told the newspaper.
Meanwhile, Union labour minister Bandaru Dattatreya told PTI his ministry will look into the provident fund contributions made by Kingfisher Airlines while it was flying.
“We have not examined the issue so far. I will look into that. We will examine (all the issues)," he told the news agency.
Mallya’s tweet and interview come two days after the Enforcement Directorate (ED) issued summons to the UB Group chairman, asking him to be personally present before it on 18 March. The summons followed the ED initiating a probe under the Prevention of Money Laundering Act against the former liquor baron.
ED is mandated with the task of enforcing the provisions of two special fiscal laws—the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002.
Since August 2014, the Central Bureau of Investigation (CBI) has been probing the alleged collusion between the airline and some bank officials in granting loans to Kingfisher Airlines Ltd despite its negative credit ratings and net worth. Mallya is a guarantor to Kingfisher’s debt to many banks.
In a series of tweets last week, Mallya said, “I’m an international businessman. I travel to and from India frequently. I did not flee from India and neither am I an absconder. Rubbish."
Mallya also dismissed media reports suggesting that he hadn’t disclosed his assets. “News reports say that I must declare my assets. Does that mean that banks did not know my assets or look at my parliamentary disclosures?" he asked.
“As an Indian MP, I fully respect and will comply with the law of the land. Our judicial system is sound and respected," he tweeted.
The Supreme Court on Wednesday issued a notice to Mallya following a plea from a consortium of creditor banks seeking to stop him from leaving the country.
Attorney general Mukul Rohatgi, representing a consortium of banks, informed the court that Mallya left India on 2 March, according to the CBI. He was likely to be in London, Rohatgi had added. To be sure, Mallya was not stopped from leaving India on 2 March by any court.
India’s largest lender, State Bank of India (SBI), declared Mallya a wilful defaulter in November. Mallya’s Kingfisher Airlines, which was grounded in 2012, owes around ₹ 9,091 crore to the consortium of banks, including loans and interest.
A UB Group spokesperson declined to comment.
A person close to the development said Mallya is not absconding and he will return to India by end of this month.
“Mallya has created a personal legal advisory council. He is seeking legal inputs from them. Mallya has plans to seek a one-time settlement with lenders," this person said, requesting not to be identified.
However, Mallya’s long-time aides are not in the picture now. Ravi Nedungadi, president and chief financial officer at UB Group, former United Spirits Ltd managing director Ashok Capoor, United Breweries (Holdings) Ltd managing director Harish Bhat, former United Spirits chief financial officer P.A. Murali and former United Spirits president and managing director Vijay K. Rekhi are no longer present in the liquor baron’s current advisory group.
Many of these veterans, associated with UB Group for over three decades, have either quit or are in the process of quitting.
Nedungadi, 59, a long-time Mallya aide, has resigned.
“Nedungadi had taken a decision to retire couple of months ago. He will be around for couple of months. Nedungadi’s retirement has nothing to do with current mess created by Mallya," the person cited earlier said.
The retirement age at UB Group is 58, which can be extended up to 60.
Nedungadi is thinking of writing a book, but not on the UB Group, the person said.
“Nedungadi and Mallya know each other for three decades and Nedugadi was instrumental in sewing many high-profile leveraged buyouts for the UB Group. However, Nedungadi was not associated with the Mallya-Diageo talks," the person added.
One of Mallya’s past close associates said the tycoon is no longer seeking advice from his old camp. “The meetings are formal. The discussions too. But he never loses his cool," he said.
Another close aide of Mallya said it is unfortunate that things are going out of his hand. “It is up to him what he has to do now. He has to take a final call. We are ready to assist him or facilitate Mallya in any crisis. But there is no word till now," he said.
The person said Mallya has found a new core team comprising high-profile lawyers from Mumbai and Delhi. He also alleged that the government is also looking for a target to prove its point.
“But it is up to Mallya to act upon this," he said.
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