“UBHL and I have filed an application with the High Court of Hon’ble Karnataka on June 22, 2018, which establishes the available assets of approximately Rs 13,900 crores.We have requested permission from the Courts to allow us to sell these assets under judicial supervision. and reimburse the creditors, including the Public Sector Banks, the amounts that the Court may order and determine. ” [Emphasis added]
This is what Vijay Mallya has said in a letter recently made public, according to this report in the Times of India.
Mallya left India to go to the United Kingdom in 2016, roughly the time since a consortium of Indian banks has been trying to recover loans of up to Rs. 900 crore from companies run by Mallya. The question is what made Mallya present the previous plan after two years. Here some informed guesses (taking of this tweet by Ashutosh Muglikar)
1. The Bankruptcy and Insolvency Code (IBC) passed
The IBC came into force in mid-2017. The most important characteristic of the Code, as indicated in this PRS summary, is that it creates a fixed-term insolvency process for individuals and companies. Recently, reports of early insolvencies completed also began to signal that it is working.
2. The Ordinance on Economic Offenders and the Transactions (Prohibitions) Act of Benami
Both are now legal realities. In fact, as this report says, Vijay Mallya was the first person to be declared an economic offender, and his properties were attached by the Directorate of Enforcement (DE) in 2016. This means that the State can not only attach assets of Vijay Mallya, as he has done, Mallya can not even save them through the benami media.
3. Revoked passport
Mallya’s passport was revoked at the request of the ED in 2016, severely limiting his ways to plan a possible escape.
4. Extradition case that leads to a conclusion
Currently, Mallya is fighting in an extradition case in the United Kingdom where the final hearing will be held on July 31. Recently, in another case, the High Court of the United Kingdom ordered Mallya to compensate 13 Indian banks for the legal procedures that are being followed against them.
Each of the four previous initiatives is more complex than the one described above. However, what is common to all is that they are driven, directly or indirectly, by the Indian government. In other words, like it or not, Narendra Modi is making Vijay Mallya pay.
Tags: Vijay Mallya, United Spirits, Interpol, Indian Passport, Enforcement Directorate, Karnataka High Court, United Breweries (Holdings) Ltd, Extradition, Benami Law, Bankruptcy and Insolvency Code, Fugitive Economic Offenders Ordinance 2018, Ashutosh Muglikar , Economic Offenders Ordinance and Benami Transactions (Prohibitions) Act,