Vijay Mallya declared proclaimed offender by Delhi court in FERA violation case

New Delhi: Patiala House court, Delhi on Thursday declared beleaguered businessman Vijay Mallya a proclaimed offender for evading summons in a Foreign Exchange Regulation Act (FERA) violation case.

The court in November 2017 had given Mallya one last opportunity to appear before it by 18th December 2017. The process to declare Mallya as a proclaimed offender was initiated by the Enforcement Directorate (ED) on the direction of chief metropolitan magistrate Deepak Shehrawat.

Four summons were served to Mallya for questioning in connection with a contract signed in December 1995 with London-based firm Benetton Formula Ltd for promotion of the Kingfisher brand abroad. It was alleged that a payment of $200,000 was made to the British firm for displaying Kingfisher logo in Formula One World Championships in London and some European countries in 1996, 1997 and 1998. ED claimed that the money was allegedly paid without prior approval from the RBI in violation of the Foreign Exchange Regulation Act (FERA).

A complaint was filed on 8th March 2000 before Patiala House court against Mallya after he failed to appear before ED and charges were framed against him under FERA.

The court, while issuing a non-bailable warrant against Mallya in November 2016, had observed that he had no inclination to return and had ‘scant regard for the law of the land’. It had also said that coercive process had to be initiated against the liquor baron as he was facing proceedings in several cases, including cases under Prevention of Money Laundering Act (PMLA) and bank loan default, and evading appearance in those matters. In April 2017, the Delhi court had issued an open ended non-bailable warrant against Mallya.

An open-ended non-bailable warrant does not carry a time limit for execution, unlike the ordinary non-bailable warrant.

A person, against whom a warrant has been issued, is declared a proclaimed offender, if the court has reason to believe that such person has absconded or is concealing himself so that such warrant cannot be executed. The court then publishes a written proclamation requiring him to appear at a specified place and at a specified time not less than thirty days from the date of publishing such proclamation.

A Mumbai court had declared Mallya as a proclaimed offender in November 2016 after he failed to join the investigation ‘in person’ in connection with a probe under the PMLA, and in cases related to a Rs900 crore loan from IDBI Bank.

Mallya has been on a self imposed exile in London since March 2016. He is presently facing extradition trial before Westminster Magistrates’ Court in London under the India-UK Extradition Treaty, 1992.

PTI & ANI have contributed to the story.