Repayment of loan by Mallya may see ED case weakening

New Delhi, Apr 22: A lot would depend on the verdict of the Supreme Court where the case against Vijay Mallya is concerned.

The Enforcement Directorate which has been trying to question Mallya has obtained a non-bailable warrant and even sought his deportation through the ministry of external affairs.

Mallya has committed that he would repay the loan amount in instalments. The question is if Mallya pays the loan amount then would the case against him filed by the Enforcement Directorate stand? Legal experts say that the cases could weaken considerably if the entire loan amount is paid.

What if Mallya clears the loan?

Experts say that the cases against him are related to defaulting on loan payments and also money laundering. However if he decides to repay the entire amount, then the cases against him would weaken and gradually fall.

An Enforcement Directorate official informed OneIndia that if Mallya repays the loan amount in full, then they would need to consult with their legal team on the next course of action.

However the probe by the CBI may continue as this case involves the role of bank officials and other public servants.

The CBI is trying to find out how such huge amounts were given. Whether these bank officials carried out due diligence while granting the loans or not is part of the CBI probe. Hence this particular cases may remain unaffected.

Mallya has told the Supreme Court that he intends clearing the loan. He had made an offer to pay up Rs 4,000 crore, but the banks had rejected the same. Mallya has told the court that he would come up with a fresh proposal on the next date of hearing.

He further said that the token money could be paid only if the Supreme Court intervenes in the matter. I cannot pay the amount until the court allows the sale of shares that have been stuck in litigation.

OneIndia News