No Relief For Mallya: SC Refuses To Stay ED Proceedings Seeking To Declare Him A Fugitive Economic Offender

A Supreme Court division bench comprising of Chief Justice of India (CJI) Ranjan Gogoi and Justice SK Kaul on Friday (7 December) refused to stay ongoing proceedings in a Mumbai special court against self-exiled industrialist Vijay Mallya, reported The Economic Times. It, however, issued a notice to the Enforcement Directorate (ED) to give its reply to Mallya’s plea.

The ED had initiated proceedings in the special court for Mallya to be declared a fugitive economic offender under the Economic Offenders Act, 2018.

Mallya had on 30 October submitted an application before the special court for staying the ED’s plea, but the court had rejected the application. He then appealed before Bombay High Court which refused to grant him a stay and it was then that he filed an appeal before the Supreme Court.

Mallya’s counsel had stated before the High Court that the industrialist also wanted to pay back all the creditors, but if properties were seized by the ED, it would hurt the process of clearing dues.

The bench was not persuaded by the argument, noting, "The application has been filed at the threshold and at a very premature stage when the lower court is still hearing the prosecuting agency's request to declare him (Mallya) a fugitive economic offender.”

The plea against Mallya by the ED will be heard on merits by the Mumbai special court.