#NewDelhi / #London : India has suspended the passport of billionaire Vijay Mallya, who is in the UK at a time when banks are struggling to recover nearly a billion dollars owed by his Kingfisher Airlines.His passport was suspended by the Foreign Ministry on the recommendation of the Enforcement Directorate.
The agency had written to the passport office, saying Mr Mallya has not cooperated with the investigation and has been unable to offer “reasonable justification for skipping summons thrice”.
The liquor baron, who had moved to the UK last month, was expected to appear for questioning las week in connection with a money laundering probe in the Rs 900-crore IDBI loan fraud case.
He has sought time till May, citing the ongoing proceedings in the Supreme Court over the settlement of his loans.
Once an accused skips summons thrice, the agency has two options — revoking his passport or getting a non-bailable warrant out against him.
Vijaya Mallya was first summoned by the Enforcement Directorate to “appear in person” at its office in Mumbai on March 18, but after he sought more time citing his prior engagements, the agency asked him to depose on April 2. Then he was given time till April 9.
#VijayMallya lawyers contend that he has spoken to his lenders via video conference — which indicate that he is available and not absconding.
It was through a video call that Vijaya Mallya offered to pay Rs. 4,000 crore to a consortium of banks – half of what he owes them — by September. He had also offered another Rs. 2,000 crore if Kingfisher won a lawsuit seeking damages from a plane engine-maker.
The banks have rejected the offer and told the Supreme Court that for meaningful negotiations, Vijaya Mallya needs to be present in person.
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