Bombay HC Questions Maintainability Of Vijay Mallya’s Plea Against Fugitive Economic Offender Act; Asks When He Will Return To India

Mumbai, Dec 04: The Bombay High Court, on Thursday, questioned the maintainability of fugitive businessman Vijay Mallya's plea challenging the constitutional validity (vires) of the Fugitive Economic Offender (FEO) Act, 2018, against him.

A bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad remarked it would only proceed with the hearing once Mallya’s counsel confirms when the businessman would return to India.

Bench puts condition on hearing

Mallya’s counsel Amit Desai said that the businessman was currently in London.

The bench said: “You come here, then we will hear you. Take instructions on when he will come.” The court expressed “serious doubts” about its ability to hear the petition given the nature of the FEO statute and adjourned the matter until December 23.

ED seeks dismissal of the plea

The Enforcement Directorate (ED), represented by ASG SV Raju and Anil Singh, filed an affidavit seeking the dismissal of Mallya's plea. The ED alleged Mallya's involvement in a bank fraud exceeding Rs 6,200 crore, with an outstanding liability of approximately Rs 15,000 crore.

The agency argued that a fugitive, who has refused to subject himself to the Indian judicial process, should be barred from challenging the FEO Act's vires. The ED cited Section 14 of the Act, which is designed to prevent such offenders from avoiding Indian jurisdiction through legal filings.

Arguments on property rights & restoration

Mallya had claimed that there was violation of his right to property due to asset seizure. Refuting the allegations, the ED contended it was unfounded, as he had multiple opportunities to appear in court.

The agency maintained that the law mandates confiscation of properties for offences over Rs 100 crore, especially those impacting the national economy, serving as a “clear and rational nexus” to compel the accused to face trial.

Mallya has also challenged Section 12(8) on the lack of property restoration upon acquittal.

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The investigating agency asserted that Section 12(9) does allow for the return of properties if the special court determines the individual is not an FEO, provided the accused returns to India and is acquitted. The ED requested the High Court to uphold Mallya's FEO declaration and the attachment of his properties.

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