A special court in Mumbai has issued a non-bailable warrant (NBW) for fugitive businessman Vijay Mallya in a Rs 180-crore loan default case involving Indian Overseas Bank (IOB).
The warrant was issued on June 29 by Special CBI Court Judge SP Naik Nimbalkar, with a detailed order released on Monday.
Considering other non-bailable warrants against the 68-year-old businessman and his “fugitive” status, the court stated that an open-ended NBW is necessary to ensure his presence.
CBI Issues Warrant Against Vijay Mallya
Fugitive businessman Vijay Mallya is facing new legal trouble as the Central Bureau of Investigation (CBI) has secured a non-bailable warrant against him. The warrant, issued by special CBI court judge SP Naik Nimbalkar on June 29, is related to a ₹180-crore loan default case involving Indian Overseas Bank (IOB).
According to the CBI, Mallya, the former promoter of Kingfisher Airlines, deliberately failed to repay the loan, resulting in a ₹180 crore loss for the government-run bank. The detailed court order was released on Monday.
The Central Bureau of Investigation (CBI) is looking into a case where the promoter of Kingfisher Airlines is accused of causing a loss of more than Rs 180 crore to a government bank by not paying back loans on purpose.
This promoter, who is a well-known liquor tycoon, has already been declared a fugitive economic offender in a money laundering case investigated by the Enforcement Directorate (ED). He currently lives in London, and the Indian government is trying to bring him back to India.
The recent arrest warrant is linked to a cheating case filed by the CBI, which claims that the promoter misused loans taken by Kingfisher Airlines from the Indian Overseas Bank (IOB) between 2007 and 2012. According to a chargesheet submitted by the CBI in court, these loans were given to Kingfisher Airlines under an agreement, but the funds were allegedly diverted for other purposes.
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Kingfisher Airlines Loan Scandal
The Reserve Bank of India (RBI) instructed the State Bank of India (SBI) in August 2010 to consider restructuring Kingfisher Airlines Ltd (KAL)’s existing facilities as a one-time measure for the aviation sector, according to the investigation documents.
As a result, lenders, including the Indian Overseas Bank (IOB), restructured KAL’s credit facilities through a Master Debt Recast Agreement (MDRA), signed by KAL and a consortium of 18 banks.
The case involves allegations of false promises and misuse of loans for purposes other than those intended, according to the Central Bureau of Investigation (CBI). The accused deliberately defaulted on loan repayments, causing a loss of Rs 141.91 crore. Additionally, an extra loss of Rs 38.30 crore was incurred due to converting loans into shares.
Recognizing the chargesheet, the CBI court issued summonses to Mallya and five other accused. However, the CBI requested a non-bailable warrant (NBW) against Mallya, labeling him a fugitive. The CBI stated that Mallya, currently in England, continues to evade the legal process in India.
The court, considering the CBI’s submission, noted that Mallya is declared a fugitive with pending NBWs in other cases, making further summonses ineffective.
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CBI Issues Warrant Against Vijay Mallya FAQs
Q.1. Who issued the non-bailable warrant against Vijay Mallya?
Ans. The warrant was issued by the Special CBI Court Judge SP Naik Nimbalkar.
Q.2. What is the amount involved in the loan default case?
Ans. The case involves a Rs 180 crore loan default related to Kingfisher Airlines and Indian Overseas Bank.
Q.3. Where is Vijay Mallya currently residing?
Ans. Vijay Mallya is currently residing in London, England.
Q.4. Why did the CBI issue the non-bailable warrant?
Ans. The CBI issued the warrant due to Mallya’s failure to repay loans and his fugitive status.
Q.5. What legal actions are pending against Vijay Mallya?
Ans. Mallya faces multiple legal actions, including being declared a fugitive economic offender in India.
