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Vijay Mallya Cannot Cite Cases Pending In India To Stall Insolvency Proceedings Abroad, Clarifies SC

Mehal Jain
6 Jan 2020 7:31 AM GMT
Vijay Mallya Cannot Cite Cases Pending In India To Stall Insolvency Proceedings Abroad, Clarifies SC
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Calling out the evasive tactics of fugitive liquor baron Vijay Mallya, the Supreme Court on Monday declared that the pendency of his plea before it shall not serve as a tool for halting proceedings in other jurisdictions.Solicitor General Tushar Mehta brought to the attention of the bench headed by Chief Justice S. A. Bobde that Mallya has been hanging the dream of a pay-back before...

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Calling out the evasive tactics of fugitive liquor baron Vijay Mallya, the Supreme Court on Monday declared that the pendency of his plea before it shall not serve as a tool for halting proceedings in other jurisdictions.

Solicitor General Tushar Mehta brought to the attention of the bench headed by Chief Justice S. A. Bobde that Mallya has been hanging the dream of a pay-back before the consortium of banks for years and not a rupee has been forthcoming, and that he is using the pendency of this proposal for settlement in the apex court to stall insolvency proceedings moved by the SBI in a UK court.

On this, the bench clarified that the pendency of proceedings before itself cannot be advanced as the ground for holding up cases anywhere else in the world.

After The Bombay High Court refused relief to Vijay Mallya, a declared fugitive economic offender under the Fugitive Economic Offenders Act, 2018 (FEO). Mallya had approached the SC in June last year seeking a stay on confiscation of properties owned by him until his petition challenging the FEO Act is decided.

A Special PMLA court declared Mallya a fugitive economic offender under provisions of the said act in early January 2019. Then, Mallya challenged the validity of FEO Act itself and also specific provisions of the act that deal with confiscation of assets and placing them under the control of the Union government.

In his application, Mallya had submitted that any decision of the Spl PMLA Court must be subject to final decision in his challenge to the FEO Act.

Mallya, charged with wilful default of loan amounting to more than Rs. 9000 cr, is facing allegations of fraud, money laundering and violations of FEMA (Foreign Exchange Management Act).

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