Asset recovery doesn't erase Mallya's money laundering charges: ED tells court

The Enforcement Directorate submitted an affidavit to the Bombay High Court on September 8, arguing that recovery of outstanding debts by financial institutions does not absolve Vijay Mallya of money laundering allegations. The submission responds to a petition filed by the fugitive businessman in 2020 seeking dismissal of criminal cases filed against him, contending that his dispute with banks had been settled once outstanding dues were recovered.

The central agency stated that movable and immovable assets worth Rs 14,131.6 crore were transferred to the SBI-led banking consortium, but this transaction cannot lead to the withdrawal or cancellation of money laundering charges. The ED emphasised that the settlement of civil debt disputes remains separate from criminal prosecution under anti-money laundering laws.

Mallya departed India in March 2016 and has consistently avoided appearing before investigating authorities despite multiple summons being issued. The ED noted that a non-bailable warrant was subsequently issued against the businessman, and he was declared a proclaimed offender in November 2016. The agency's submission underscores its position that Mallya's continued evasion of the Indian legal system compounds the charges against him and cannot be remedied through financial settlements alone.