More Trouble For Mallya
In a major development for absconding Indian businessman Vijay Mallya, Britain's Serious Fraud Office (SFO) is conducting a probe against the liquor baron for alleged "money laundering" in UK and beyond.
Reports in major dailies say that British investigators are probing the alleged use of several companies for laundering money from India to UK through a circuitous route and a complex web of companies, and further to Switzerland and other countries. It further states that SFO has already collected substantial information about Mallya's movable and immovable assets, his investment and shares in various companies in the UK and bank account details. The financial investigation agency has decided to initiate an independent probe against Mallya to examine whether the alleged money laundering involved British companies linked to him.
The UK authorities have informed India about its independent 'formal' probe against Mallya while seeking details of alleged money laundering and assets abroad from CBI and ED.
Vijay Mallya had submitted his paperwork yesterday, in response to the Crown Prosecution Service (CPS) which is representing the case for India. The Indian side is now meant to review the evidence filed by him and the court will next sit to hear the case on November 20, and the actual trial proceedings will begin on December 4th.
While the extradition proceedings have been underway for nearly six months now, with multiple reports filed and evidence submitted, it still not a given that he will be extradited. The judge has to be satisfied that Mallya will get a fair trial in India. His lawyers will argue he is being politically hounded and is a victim of a media trial. He might also point out other Indian businessmen owe much more money to Indian banks, but his client has been singled out for persecution.
“Even if the decision goes in favour of the Indian government, it is very likely that Mallya will re-appeal and approach the European Courts of Justice (ECJ), which is known for being very lenient if it suspects that Mallya will not receive a fair trial in India. Considering that the UK is still in the EU, Mallya has more than a year to approach the ECJ, as long as EU laws still apply in the UK,” said Sarosh Zaiwalla, founder and managing partner in London based firm, Zaiwalla & Co.
Meanwhile, reports have emerged that the UK’s Serious Fraud Office (SFO) is conducting a probe for alleged money laundering in the UK and beyond. While this is not directly related to the extradition hearings, it will certainly add a measure of weight to the case presented by the Indian authorities for the extradition. Zaiwalla states that if the Chief Magistrate rules in favour of extradition at the end of the trial, Amber Rudd - the British Home Secretary must order Mallya's extradition within two months since the day of the Judgment. “The Indian government needs to be practical and start settlement negotiation with Mallya either directly through an intermediary or formal mediation. That in my view would be more sensible and beneficial course for the government to adopt,” said Zaiwalla who is also an International arbitration lawyer and has met Mallya on earlier occasions.
