‘End Mallya-SBI dispute’:Bombay HC says case having bad impact on India’s economy

The Bombay High Court has said that the ongoing commercial dispute between fugitive businessman Vijay Mallya and banks should now be brought to an end. The single judge bench of Justice Milind Jadhav, while hearing Mallya’s petition, said that if both parties do not move forward from this dispute, it will have a direct and negative impact on the country’s economy. The court has also sought from the Enforcement Directorate (ED) the current status of the investigation and details of the attached properties in this matter. 1. Decade-long dispute needs to be concluded The High Court bench said that this case, which has been going on for almost a decade, should now reach a logical conclusion. 70-year-old Vijay Mallya had filed a petition calling the order to hand over properties to banks as improper. On this, the court said that the solution to commercial disputes is often hidden within the disputes themselves. Instead of remaining in mutual entanglement, the parties should move towards a practical solution. 2. Mallya had challenged the PMLA court’s order In the year 2020, Mallya challenged the order of the special Prevention of Money Laundering Act i.e. PMLA court, which allowed the consortium of banks led by State Bank of India to use his properties attached by the ED. Mallya is accused of defaulting on a loan of ?9,000 crore taken from several banks for the now-defunct Kingfisher Airlines (KFA). 3. Fled the country in March 2016, declared fugitive in 2019 Vijay Mallya fled to the UK in March 2016. After this, in the year 2019, authorities declared him a fugitive economic offender under the Fugitive Economic Offenders Act (FEOA). Under the law, authorities have the right to confiscate his properties. The Government of India is continuously trying for his extradition from the UK. 4. Court refuses to grant relief until return to India Earlier in February, the bench of Chief Justice Shri Chandrasekhar and Justice Gautam Ankhad had heard two petitions of Mallya. These petitions challenged the order declaring him a fugitive under FEOA. In the hearing on February 12, the court had clearly stated that until Mallya returns to India and surrenders to its jurisdiction, his petition will not be considered. 5. Uncertainty over return, lawyer cited Supreme Court decisions In the next hearing held on February 18, Mallya said that due to restrictions imposed by English courts, he cannot currently say when he will return to India. Senior Advocate Amit Desai, appearing for Mallya, cited Supreme Court decisions and urged that constitutional courts can pronounce judgments on writ petitions even in the absence of the petitioner, therefore both petitions should be heard separately. What is the Fugitive Economic Offenders Act (FEOA)? The FEOA law was created to crack down on economic offenders who flee the country to evade action and arrest by Indian courts. Under this law, courts have the authority to attach, i.e., confiscate, the properties of the accused located in the country and abroad even before the completion of the trial, and to auction/sell them to recover dues owed to banks.