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A CBI court has issued a non-bailable warrant against Vijay Mallya for defaulting on a Rs 180-crore loan from Indian Overseas Bank (IOB). Mallya, who left India in March 2016, was declared a Fugitive Economic Offender in January 2019. The warrant was issued by Judge SP Naik Nimbalkar on June 29, with details released on Monday. The court cited Mallya’s fugitive status and previous non-bailable warrants to justify the decision.
The Central Bureau of Investigation (CBI) alleges that Mallya, the promoter of Kingfisher Airlines, deliberately defaulted on loan payments, causing a loss of over Rs 180 crore to IOB. Mallya, currently in London, has also been declared a fugitive economic offender in another money laundering case by the Enforcement Directorate (ED). The Indian government is seeking his extradition. The latest warrant relates to a CBI case of cheating and misappropriating loans obtained by Kingfisher Airlines from IOB between 2007 and 2012.
CBI Chargesheet Details
According to the CBI chargesheet, Kingfisher Airlines received credit facilities under an agreement with a consortium of 18 banks, including IOB, following a directive from the Reserve Bank of India (RBI) in August 2010. The airlines were supposed to restructure existing loans as a special measure for the aviation sector. The CBI claims Mallya and others diverted the loans for other purposes and defaulted on repayments, causing a loss of Rs 141.91 crore. Additionally, converting loans to shares caused a further loss of Rs 38.30 crore.
Court Summons and CBI Plea
The CBI court has summoned Mallya and five other accused. The CBI argued for a non-bailable warrant, stating Mallya is a fugitive and absconder living in England, continuing to evade Indian law. The court agreed, noting that previous summons and warrants against Mallya have been ineffective, and declared issuing a process (summons) would be futile.
