On Monday, the trial court issued a non-bailable warrant (NBW) against Vijay Mallya on the Enforcement Directorate’s (ED) application in the Rs 900-crore IDBI Bank fraud case. The ED moved court after Mallya failed to comply with three summonses served by the agency. So, what’s next?
To what use will the investigative agency put the NBW?
The ED will submit the NBW to the immigration department and request it to issue a fresh Look Out Circular (LOC) against Mallya. This LOC will be sent to all airports in India, so that he can be arrested the moment he enters the country.
Why is Vijay Mallya not returning to India?
According to sources in the agency, Mallya hasn’t complied with the ED summonses because he apprehends arrest.
Is the case against Mallya a simple one of bank default or a criminal case?
According to agency sources, Mallya has been booked under the Prevention of Corruption (PC) Act by the CBI, which is a criminal offence. The CBI had alleged in its FIR that it suspected Mallya of bribing IDBI Bank officials to get the loan. On the basis of the CBI’s FIR, the ED registered a money-laundering case against him. The ED suspects that Mallya diverted funds abroad.
What’s next for the ED, or how can the agency bring Mallya back to India?
The NBW has prepared the ground for the ED to request Interpol to issue a Red Corner Notice (RCN) against Mallya. The ED is likely to write to Interpol, via the CBI (which is the nodal agency for Interpol in India), to issue the RCN. The ED will also turn over all evidence against Mallya to Interpol to expedite the process. The notice will help the agency track Mallya. Once his whereabouts are known, India can begin the extradition process with the country in which he has taken asylum. However, it is also true that the success rate of extraditions is very low in India. The CBI, for example, failed to extradite Ottavio Quattrocchi from Argentina in the infamous Bofors scandal.
Will it be difficult for the ED to convince Interpol to issue an RCN against Mallya?
According to sources in the ED, it shouldn’t be difficult for them to get Interpol to issue an RCN against Mallya because of the nature of the allegations against him. Both corruption and money-laundering are serious criminal offences and agencies have enough evidence against him.
Why has the ED failed to secure an RCN against Lalit Modi?
Lalit Modi has also been charged with money-laundering, but so far, the ED has failed to get an RCN registered against him. According to sources, the case against Modi was registered under FEMA (Foreign Exchange Management Act), which is a civil offence. Later, the case against Modi was registered as a money-laundering charge. Modi took advantage of the agency’s unclear stance and wrote to the Interpol, saying that the change of offence was a political move rather than an investigation. Taking note of Modi’s plea, Interpol has been sitting on the ED’s RCN request for the past eight months.
Does Mallya want to return to India?
According to sources, unlike Lalit Modi, Mallya has high business stakes in India and he is also a sitting MP in the Rajya Sabha. He is, therefore, making efforts to arrive at a settlement with the banks. If Mallya succeeds in settling his dues, in all likelihood, the charges against him will collapse and he can return to India a free man.
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