Modi govt is using a 21-year-old treaty to get Vijay Mallya back to India

The Enforcement Directorate is banking on 21-year-old treaty to get Vijay Mallya back to India. According to ET Now, the directorate has written to ministry of external affairs to invoke the Mutual Legal Assistance Treaty (MLAT) which could bring Mallya back.

The move comes days after the CBI registered a fresh case against the beleaguered liquor baron for allegedly cheating a consortium of nationalised banks to the tune of Rs 6,027 crore by not keeping commitments to repay loans taken for his now-defunct Kingfisher Airlines.

As per the 1995 treaty, countries can seek “transfer of persons, including persons in custody, for the purpose of assisting in investigations or giving evidence in proceedings”.

So, why is India now going for this treaty?

a) Mallya cannot be deported under UK laws because under the 1971 Immigration Act, UK does not require an individual to hold a valid passport in order to remain in the country. That means, Mallya can legally stay in Britain if his passport was valid when he entered the country. He left India on March 2 and the Indian government revoked his passport only after that, which means his passport was valid when he entered the UK.

b) Extradition is possible only if Mallya is recognised as a criminal by both countries.

c) Mallya can challenge India's extradition move in UK courts.

It is alleged that State Bank of India and its consortium banks had advanced various credit facilities to Kingfisher Airlines Limited during the period between 2005 and 2010. During 2009-10, the company failed to meet its repayment commitments to the bank from whom it had availed the credit facilities and Kingfisher Airlines did not keep its account with the consortium banks regular which became NPA, the FIR states.

The consortium banks, therefore, recalled the credit facilities and also invoked corporate guarantee of UBHL and personal guarantee of Mallya, it alleged.

Mallya deliberately did not repay the amount, outstanding dues payable by Kingfisher Airlines to consortium of banks. It is alleged that there was a conspiracy among group companies promoter and unknown others to cheat the lenders.