The Enforcement Directorate (ED) has asserted before the Bombay High Court that the recovery of ₹15,000 crore from fugitive businessman Vijay Mallya will not lead to the closure of his ongoing money laundering case or related criminal proceedings.
Mallya, who has been residing in the UK since 2016 and was declared a fugitive economic offender in 2019, had petitioned the High Court for the termination of his long-standing case. His legal team argued that his civil liabilities had been settled, citing the recovery of approximately ₹15,000 crore by an SBI-led consortium against an initial claim of about ₹6,203 crore, including interest.
ED Rejects Mallya's Plea
In its detailed reply, filed through advocate Ashish Mehta, the ED clarified that the recovery of bank dues by the consortium is a distinct process from the criminal proceedings initiated under the Prevention of Money Laundering Act (PMLA). The agency emphasized that while the recovered amount might influence the calculation of outstanding civil debts, it does not determine whether the alleged scheduled offences or money laundering have been committed.
The ED also highlighted Mallya’s continued absence from India and his refusal to submit to the jurisdiction of the competent criminal court. The agency stated, "His continued absence and conduct, therefore, remain relevant to the overall factual background of the present proceedings."
Asset Restoration and Legal Implications
Approximately ₹14,131.60 crore worth of assets have been restored or handed over to the SBI-led consortium through orders passed by a special PMLA court in Mumbai. However, the ED pointed out that asset restoration under Section 8(8) of the PMLA is a statutory mechanism for restitution and does not negate the existence of a scheduled offence or money laundering.
Consequently, the ED maintains that subsequent recovery or restoration of assets cannot extinguish or render the pending PMLA proceedings ineffective. Mallya's broader legal challenges also include contesting the constitutional validity of the Fugitive Economic Offenders Act.
The High Court has granted Mallya a final opportunity to confirm his intention to return to India and accept its jurisdiction. The court is expected to further consider the matter after reviewing the ED’s official position and the current status of the proceedings against him.