LEGAL CASE OF SCAM
CASE: State Bank Of India vs Dr. Vijay Mallya on 11 July, 2022
INTRODUCTION
Business mogul Vijay Mallaya, a former Rajya Sabha member and owner of the RCB IPL franchise and the Kingfisher brand, surprised everyone by revealing that he owed 9,000 crores in arrears. He was accused of fraud and money laundering, and he owed them money to seventeen Indian banks. On March 2, 2016, Mallya fled the nation for safety in Britain due to his fear of being arrested. India had asked to try cases against Mallya and extradite him here. This article talks about the biggest swindle in the nation and how the law was used to try him for the crimes he did. The laws governing the extradition of a foreign national who is on the run or vice versa where the process can be done either by treaty or arrangement. This article would collectively discuss more on the case and the act.
VIJAY MALLAYA SCAM
Mallya, who assumed his father’s firm upon his death at the age of 28, only seen his graph rise, with no way to turn back in the meantime. He made the company profitable and grew it by making investments in the liquor and airline industries. Every traveler chose to fly with his Kingfisher Airlines, which has grown to be the top airline firm. 2012 saw the collapse of the global aviation industry due to a number of circumstances, including volatile financial markets and an economic downturn. The collapse in global aviation caused Kingfisher, which had drawn passengers with its all-economy, single-class layout aircraft and excellent food and entertainment, to go through its worst period. Although there have already been setbacks in India’s civil aviation industry, and all airlines are losing money, the sector’s 2005 policy decisions have made matters worse. And in this scene of collapse, Molly made the bold move of purchasing Air Deccan in 2007, which resulted in financial consequences for both Molly and the firm.
Kingfisher Airlines was founded in 2003 and began commercial operations two years later. The airline’s maiden takeoff occurred in 2003 as a result of the opulent lifestyle and king-like living that had made him the brand’s icon. From 4 flights at the beginning to 104 flights, the airlines shine brightly and received positive feedback from the traveler base. Therefore, following his choice to purchase air Deccan, the kingfisher entered the pothole unaware of its eventual fate. 2008 saw a rise in fuel prices, a number of speed breakers implemented to force airlines to operate on unprofitable routes, and an eventual collapse of the carriers. The once-globally renowned airlines were debt-trapped, and by the time action was taken to stop the collapse, it was too late. All domestic and international flights were canceled, the company suffered a 7,000 crore loss in 2012, and its stock plummeted. The employees, meantime, went on strike since they had not received their salary since 2008. Some who oppose it contend that the primary cause of its total closure was the combination of Kingfisher and Air Deccan. In 2015, the Indian Express revealed that Mallya owed loans from 17 Indian institutions, the worst of which was SBI, where he owed 1600 crore, due to his mishandled business decisions and incompetent management. He then left for Britain in order to avoid being arrested.
INDIA AND ITS EXTRADITION PLEA FOR VIJAY MALLYA
Running away from the nation served as a checkpoint for the nation and its governance due to the growing debts and impending arrest. They labeled him an economic fugitive and initiated legal action to get him back to India so an Indian court could hear his case. Following his detention, the Supreme Court found him guilty of contempt of court in 2017 following a series of bank-filed cases regarding his failure to pay outstanding debts. He sent his kids a substantial 40 million dollar transfer while the matter was pending. The Karnataka High Court’s interim injunction, which barred the respondent from transferring, alienating, disposing of, or establishing third party rights over any of his movable or immovable property and thus his transfer amounts to contempt. So the SC had before deciding the quantum of punishment gave him the opportunity of being heard.
India has filed a plea for his extradition after he ran away. The London magistrate court granted him a 14-day window to challenge the extradition order to India. Prior to that, in 2017, he was granted bail in response to a Scotland Yard extradition warrant. However, since then, his extradition has been contested, and as of right now, a final judgment has not been made. He was designated as a Fugitive Economic Offender (FEO) by Mumbai High Court in 2019, making him the first company in Indian history to hold this designation. After a year-long trial, the court’s final hearing over the admissibility of evidence given by Indian authorities failed to yield a positive outcome. The extradition order was appealed by the respondents and finally, in 2019, the UK home secretary ordered his extradition which was praised by the Indian community. Even after 2 years of this order, his extradition was stalled. The British government had rationalized the stall as there are secret legal proceedings that caused the delay.
EXTRADITION LAWS IN INDIA
There were persistent pleas for extradition in the Vijay Mallya case. Extradition is the legal, diplomatic process by which a country requests that another take back custody of a criminal or fugitive. This is known as international law. To facilitate the extradition process, India has extradition agreements with nine countries in addition to treaties with forty-two other nations. The Indian Extradition Act, 1962 governs the aforementioned procedure in India. Under Section 3, the government may notify the other nation that the terms of the aforementioned legislation are applicable to it. Section 3(4) will also apply to and evaluate cases from nations without an extradition relationship with India. Any agreement or convention with a foreign nation may be regarded as an extradition treaty by the CG under this clause. India has ratified a number of conventions, including the United Nations Convention against Corruption, the International Convention of 1997, and the United Nations Convention against Transnational Organized Crime of 2011. An extradition request can be presented to the Ministry of External Affairs once the investigating agency files the charge sheet, the magistrate grants cognizance, and the accused receives orders or directions for the commission of the crime. Additionally, an open-dated arrest warrant containing the specifics of the offense should be submitted with such a request.
CONCLUSION
The prolonged lawsuit simply serves to highlight how the wealthy abuse the system. The banks had mostly lost their repute, notwithstanding their usually prudent actions. Future cases would take precedent from this one. Therefore, the government must ensure that such incidents do not happen again, extradite Mallya, and establish a standard for any situations that come up in the future. In circumstances like these, delaying extradition will only worsen the state of the law and justice system because extradition is typically only used to decrease the burden of proof for those who leave to avoid arrest. Mallya’s case needs to be fixed, and he should be convicted for the crimes he did in the Indian court as well as the outstanding debts.