Vijay Mallya receives NBW in Rs 180 crore loan default case linked to Indian Overseas Bank

Vijay Mallya. Source: AP.

Trouble for Vijay Mallya increased once again after a special CBI court in Mumbai issued a non-bailable warrant (NBW) against the fugitive businessman in a Rs 180-crore loan default case linked to Indian Overseas Bank (IOB).

The NBW against Mallya was issued on June 29 by the special CBI court judge SP Naik Nimbalkar and a detailed order was released on Monday (July 1).

‘Willful’ non-payment of loan by Mallya

In its warrant, the CBI said that the promoter of the now-defunct Kingfisher Airlines promoter caused a wrongful loss of Rs 180 crore for the government-run Indian Overseas Bank by the "willful" non-payment of the loan.

Case in which NBW issued against Mallya

The NBW issued by the CBI court is linked to a cheating case registered by the central agency regarding the alleged division of loans amounting to nearly Rs 180 crore availed by Kingfisher Airlines between 2007 and 2012. The loans were given by the government-run Indian Overseas Bank.

As per the chargesheet, the loan was issued to the private carrier based on an agreement.

The chargesheet also claimed that Mallya was “dishonest” and had the “intent to cheat”, which is why he "willfully" defaulted on the repayment obligations under the aforesaid loans and caused a wrongful loss of Rs 141.91 crore on account of default on loans.

An additional loss of Rs 38.30 crore was caused by the conversion of loans into shares.

In its plea, the CBI said that Mallya is “a fugitive and an absconder” who continues to live in England and “subvert the process of law in India.”

10 accused in the case

"There are a total of 10 accused in this case including Vijay Mallya and the FIR was registered in this case in August 2016,” the court said.

The court further said that summons to appear has been issued to all the accused, but for Mallya, a non-bailable warrant has also been issued, the court said.

Citing other non-bailable warrants issued against Mallya after considering CBI submission, and his status as a "fugitive", the court further said: "This is a fit case to issue an open-ended NBW against him to secure his presence.”

The 68-year-old embattled liquor tycoon, who has already been declared a fugitive economic offender in a money laundering case probed by the Enforcement Directorate(ED), currently stays in London and the Indian government is seeking his extradition.

With inputs from agencies