First Return To India, Only Then Case Will Be Heard: HC To Vijay Mallya Over ED's Property Seizure

The Bombay High Court rejected Vijay Mallya's appeal for a stay on the Enforcement Directorate's petition declaring him a "fugitive economic offender" and seizing his property, citing his absence in India.

The court stated that the hearing of the case would only take place once he returns to India, according to NDTV.

Mallya had opposed the charges against him by the ED under the Fugitive Economic Offenders Act with his legal representative, calling the use of this legislation into question.

Mallya's lawyer, Amit Desai, informed the chief justice that Mallya was currently in London, to which bench replied: "You must first return to India, only then will we hear your case.

The Enforcement Directorate reported to the court that the reason the FEO Act was put into place was to prevent people from fleeing the country and avoiding the court. The agency then stated that Mallya was provided many opportunities to appear before the court but failed to do so, and hence the seizure of his property would be legally justified.

The ED also noted that the financial fraud Mallya was accused of exceeded Rs 100 crore and had a direct impact on the country's economy, which would make the property seizure law extremely necessary and logical.

Mallya's legal representation brought attention to Section 12(8) of the FEO Act, which they deemed unconstitutional, citing that it does not clearly mention the return of the seized property if the accused is later acquitted of charges.

The ED responded by stating that the law provides for the return of the property under Section 12(9) — but only if the accused returns to India and is acquitted in the case.

The Bombay High Court refused to grant relief on Mallya's petition but clarified that the next hearing would take place only after his lawyers provide information regarding when Mallya is expected to return to India.

Vijay Mallya has been residing in London since March 2016 and is facing charges of bank fraud and money laundering worth more than Rs 100 crore in India. The next hearing in the case will be on Dec. 23.