Court directs Vijay Mallya to appear, cancels exemption

Order came on a plea of the ED which had also sought non-bailable warrant against him

A Delhi court on Saturday cancelled the exemption granted to liquor baron Vijay Mallya from personal appearance in a case lodged for allegedly evading summons in connection with a Fera (Foreign Exchange Regulation Act) violation case.

Chief Metropolitan Magistrate Sumit Dass directed Mallya to personally appear before it on September 9. The exemption to Mallya was granted in December 2000 in a complaint filed by the Enforcement Department (ED) for evading the summons issued to him by it.

The agency had issued summons to the businessman in connection with alleged payment of $200,000 to a British firm for displaying the Kingfisher logo in the Formula One World Championships in London and some European countries in 1996, 1997 and 1998.

The agency had claimed the money was allegedly paid without prior approval from the Reserve Bank of India in violation of Fera norms.

The order came on a plea of the ED, filed through prosecutor N K Matta, which had also sought issuance of non-bailable warrant against the chairman of the now-defunct Kingfisher Airlines to secure his presence in the ongoing trial of the case, which is at its final stage.

The agency had said Mallya was reported to be in the UK, and his presence in the trial of the case was essential, seeking court directions to him to be present in each hearing.

Matta had argued that the court should recall its December 2000 exemption order as a Prevention of Money Laundering Act court in Mumbai has recently issued an open-ended warrant against him in connection with a money laundering case. According to ED, Mallya was summoned four times for questioning in connection with a contract signed in December 1995 with London-based Benetton Formula Ltd for promoting the Kingfisher brand.

When Mallya failed to appear before ED in response to the summons, a complaint was filed on March 8, 2000, before a court here and later charges were framed against him under FERA.