The Bombay High Court has sought the Enforcement Directorate’s stand on a petition filed by fugitive businessman Vijay Mallya in 2020 challenging an order that allowed a consortium of banks led by the State Bank of India (SBI) to use assets confiscated by the ED to recover unpaid dues. A division bench of Justices Revati Mohite Dere and Sandesh Patil indicated on Wednesday that the dispute may have largely lost its relevance because most of the assets covered by Mallya’s petition have already been dealt with. The court observed that the “idea is to move on” and asked the ED to clarify its position.
Mallya had approached the High Court in 2020 against an order passed by a special court under the Prevention of Money Laundering Act (PMLA). That order had permitted the SBI-led consortium to take control of certain assets confiscated by the ED and use them towards recovering money owed by Mallya and his companies. During Wednesday’s hearing, Mallya’s counsel told the bench that most of the assets involved in the petition had subsequently been disposed of or otherwise dealt with, leaving little substantive relief to be decided in the original proceedings. The court then asked whether there was any point in continuing with the litigation if the underlying assets were no longer available for adjudication in the manner originally contemplated.
The bench sought the ED’s response on whether the petition could now be disposed of, while indicating that the parties should consider bringing the long-pending proceedings to an end. The matter dates back to proceedings arising from attempts by lenders to recover dues linked to the now-defunct Kingfisher Airlines. Mallya left India in March 2016 amid mounting legal proceedings over loans extended to the airline.
Mallya was declared a fugitive economic offender in 2019 under the Fugitive Economic Offenders Act, paving the way for confiscation of his properties in India. He has separately challenged aspects of the proceedings against him in several courts. Indian authorities have also been pursuing his extradition from the United Kingdom. Mallya has remained in Britain despite India securing legal orders in its favour in the extradition process. The 2020 petition before the Bombay High Court, however, concerns the handling of assets attached and confiscated in India and their transfer to banks seeking recovery of their dues.
The High Court’s latest observations suggest that it is inclined to examine whether continuing to hear the petition serves any practical purpose after developments concerning the assets over the past six years. The case will now depend on the ED’s response regarding the present status of the confiscated properties and whether any surviving issue requires adjudication by the court.