Bombay HC asks Vijay Mallya, SBI to ‘move on’ as 2020 asset seizure plea loses relevance

Bombay HC Asks Vijay Mallya to Move On in Asset Case

Theindiapostdaily.com – The Bombay HC asks Vijay Mallya and the State Bank of India to move forward as a six-year-old petition regarding property seizure loses its relevance. A division bench of the high court observed on Wednesday that the commercial dispute between the fugitive businessman and the bank consortium should finally be resolved. Mallya’s legal team had informed the court that the 2020 application challenging asset confiscation has become obsolete over time.

Why the Petition Lost Relevance

Sr. Advocate Amit Desai, representing Mallya, explained that the original petition was filed in 2020 when settlement negotiations were still underway. At that time, the application sought protection for certain properties. However, Desai pointed out that circumstances have changed significantly since then. Most assets mentioned in the initial proceedings have either been attached or resolved through other mechanisms.

The high court appeared inclined to close the matter. Justice Jadhav emphasized the need to resolve the issue without further delay, noting that prolonged disputes affect both relationships and the economy.

“Actually, this issue needs to be put to an end. The idea is to move on… otherwise the relations and the economy of the country suffer,” Justice Jadhav stated.

Financial Recovery Progress

Desai argued that Mallya’s civil liabilities have largely been satisfied. He highlighted that public sector banks have recovered approximately ₹15,000 crore from the businessman. This amount exceeds the original claimed dues of ₹6,203.35 crore, not including interest payments. The lawyer criticized the banks for maintaining the pending status despite substantial recovery.

The court directed the Enforcement Directorate to file an affidavit confirming whether the settlement has been finalized. The bench also clarified that concluding the civil dispute would not affect the ongoing criminal proceedings against Mallya. These criminal cases must continue until their natural conclusion.

“Public sector banks keeping this matter pending is unfortunate,” Desai observed.

“The RBI audit itself says it’s an airline’s business failure and nothing else. Banks have taken away ₹15,000 crore and now they say sorry. That’s not good enough,” Desai remarked.

Legal Background and Current Status

The proceedings stem from cases under the Prevention of Money Laundering Act. In February 2019, the ED informed the special PMLA court that it had no objections to the SBI-led consortium liquidating Mallya’s confiscated properties. Mallya was declared a fugitive economic offender in January 2019 under India’s Fugitive Economic Offenders law.

His 2020 petition challenged the special PMLA court’s order allowing the lender consortium to use seized assets for debt recovery. The latest hearing focused on whether a live dispute remained for adjudication. Mallya left India in March 2016 as legal proceedings intensified and has remained in the UK since then.

FAQ Section

What is the current status of Vijay Mallya’s asset seizure case?

The Bombay HC has asked both parties to move on as the 2020 petition challenging asset seizure has lost relevance. Most assets have been attached or resolved, and the court believes the commercial dispute should be concluded.

How much has been recovered from Vijay Mallya so far?

Public sector banks have recovered approximately ₹15,000 crore from Mallya, which exceeds the original claimed dues of ₹6,203.35 crore excluding interest payments.

Will the civil case closure affect criminal proceedings?

No, the high court clarified that concluding the civil or commercial dispute will not impact the ongoing criminal proceedings against Mallya, which must continue until their logical conclusion.

Why is Vijay Mallya still in the UK?

Although UK courts have approved his extradition, his departure has been postponed due to additional legal proceedings in Britain. A confidential legal matter has also been mentioned as a reason for his continued stay.