Mallya willing to pay dues to creditors

November 29, 2018 11:42 pm | Updated July 06, 2022 12:30 pm IST - Mumbai

Vijay Mallya’s advocate Amit Desai on Thursday informed a special Prevention of Money Laundering Act (PMLA) court on Thursday, that his client is willing to sign a consent term with the government for the payment of his dues.

The court was hearing an application filed by the Enforcement Directorate (ED) to declare Mr. Mallya a ‘fugitive’ under the Fugitive Economic Offenders (FEO) Act.

Mr. Desai said, “My client is ready to sign a consent term with the government for payment of dues to creditors. Confiscation of properties will not help anyone. The FEO Act does not apply to my client as the legislation takes away all his rights under the Indian Penal Code and the PMLA. Secondly, the Act can only be applied prospectively, but in Mr. Mallya’s case it is being applied retrospectively. My client would have been eligible had he fled the country after the Act had been passed and proceedings initiated under it. Applying it retrospectively is not fair, fairness is in Article 21 of the Constitution.”

Questioning the ED’s intent on declaring Mr. Mallya a fugitive Mr. Desai said, “If declared a fugitive under FEO, my client becomes a proclaimed offender, and has to come back and attend the trial. He has already been declared a proclaimed offender under the Code of Criminal Procedure. You cannot have multiple declarations for the same man. Their sole objective behind declaring him a fugitive is to confiscate property. How can you confiscate property before the trial? If acquitted his property will lie with the Consolidated Fund.”

Mr. Desai also termed the FEO Act draconian. The Bombay High Court had on November 22, dismissed a plea filed by Mr. Mallya to stay proceedings by the ED to declare him a FEO.

The court will continue the hearing on Friday.

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