To safeguard assets, Mallya plans return to India

New Delhi, Aug 28: Vijay Mallya is likely to return to India, in the wake of his properties slipping away. The return is being planned in a bid to keep his properties under his control.

The new Fugitive Economic Offenders Law entitles the government agencies to take control over the property, once a person is declared an absconder by a competent court.

Mallya, according to officials has been sending feelers in a bid to return to India. He has also been negotiating with banks to settle the amount due, sources say.

Mallya is also speaking to the officials in the Enforcement Directorate. While there has been no official comment from Mallya on this. Top sources tell OneIndia that one of the reasons why Mallya is signalling a return to India is because of the newly introduced Fugitive Economic Offenders Ordinance 2018.

Mallya has hinted that he would like to contest the recent action against him under the new ordinance. The ordinance gives the agencies to seize assets of a fugitive economic offender. It also states that the person in question cannot contest the action against him under the new ordinance, unless he or she returns to India.

Mallya is also said to have suggested that he would join the legal process in India. Feelers have been sent, there is nothing concrete as yet. Everything would depend on what he has to say, but for these talks to be fruitful, he would need to come back to India from London first, the officer also informed.

Further the talks would also depend on what offer he would make to the banks. He will have to clear the loans he has availed and there has to be a guarantee to that effect. The consortium of banks would also have to be involved in this process, officials also said.

The agencies had moved a Mumbai court seeking to declare Mallya as a fugitive economic offender. The court had last month issued summons to Mallya returnable by August 27. If he fails to appear before the court on August 27, then action would be initiated under the new ordinance. The agencies have sought immediate confiscation of assets worth around Rs 12,000 crore belonging to Mallya.

The negotiations would depend on what Mallya has to offer. He would also be aware of the fact that the agencies are not only probing the cases relating to the loans he has availed. He has also been accused of money laundering, which is a serious charge.

Last month, Mallya through his counsel had said before the Karnataka High Court that he was willing to settle all his outstanding dues. He later told a news agency that the assets placed before the High Court were worth 2 billion US dollars, which was more than sufficient to repay his creditors. He however denied that his offer was linked to the new ordinance and the ED's action before the Mumbai court in this regard.