Obvious Indian banks broke rules in Vijay Mallya case: UK judge


London/New Delhi, Mar 17 (PTI): The British judge hearing the extradition case of liquor baron Vijay Mallya on Friday said that it was blindingly obvious that rules were being broken by Indian banks which sanctioned some of the loans to the erstwhile Kingfisher Airlines.

Presiding over a hearing at Westminster Magistrates' Court in London, Judge Emma Arbuthnot described the case as a jigsaw puzzle with different pieces of massive evidence to be put together to paint a picture, which she said she was now able to see more clearly than a few months ago.

There are clear signs that the banks seem to have gone against their own guidelines [in sanctioning some of the loans], she said, inviting the Indian authorities to explain the case against some of the bank officials involved because that relates to the conspiracy point against Mallya.

The 62-year-old businessman, who is on trial for the UK court to rule if he can be extradited to India to face charges of fraud and money laundering amounting to around Rs 9,000 crore, watched the proceedings from the dock.

The Crown Prosecution Service (CPS), arguing on behalf of the Indian government, laid out their arguments against the defence calling into question the admissibility of some of evidence submitted by the Indian authorities.

Pointing out that Mallya had chosen not to give evidence in the case, CPS counsel Mark Summers rejected the defence claims on the evidence as nonsense.

The government of India has established by other copious evidence a prima facie case of fraud, he said.

The judge is expected to rule on the admissibility of evidence and set a timeframe for her final verdict. However, the matter could be delayed over further clarifications required on the source of some of the emails submitted as evidence by the Indian authorities.

Mallya's counsel, Clare Montgomery, argued that evidence that was claimed as a blueprint of dishonesty by the CPS was in fact privileged conversation between Mallya and his lawyer about legal advice in clear contemplation of litigation and hence should be inadmissible.

On a separate category of evidence presented by the Indian government, Mallya's team questioned the reliability of investigating officers in the case and pointed to over 150 pages of near identical material purporting to be statement of witnesses taken under Section 161 of the Indian CrPC.

"They do not appear to be in any way an account of things that witnesses would have said but rather seem to be somebody else's analysis put into the mouths of the witnesses, down to the spelling mistakes," Montgomery said, adding that the documents were "identically reproduced" with not only the same words but also the same typing errors.

The judge did not seem to be convinced by this argument and said she had found only two-three cases of mistakes but did not see a problem in the preparation of the statements.

Judge Arbuthnot had also sought further clarifications related to availability of natural light and medical assistance at Barrack 12 of Mumbai Central Prison on Arthur Road, where Mallya is to be held if he is extradited from Britain.

The CPS indicated to the judge that the government had provided all the necessary clarifications along with photographs of the two cells that comprise Barrack 12.

The extradition trial, which opened at the London court on December 4, is aimed at laying out a prima facie case of fraud against the tycoon, who has been based in the UK since he left India in March 2016. It also seeks to prove that there are no "bars to extradition" and that Mallya is assured a fair trial in India over his now-defunct Kingfisher Airlines' alleged default of loans from a consortium of Indian banks.

The CPS, representing the Indian government, has argued that the evidence they have presented confirms dishonesty on the part of the businessman and that there are no bars to him being extradited from the UK to face Indian courts.

Mallya's defence team has deposed a series of expert witnesses to claim he had no fraudulent intentions and that he is unlikely to get a fair trial in India.

Mallya was arrested by Scotland Yard on an extradition warrant in April 2017 and has been out on bail on a bond worth 650,000 pounds. Chief Magistrate Arbuthnot is expected to pronounce her verdict in the case by May this year.

If she rules in favour of the Indian government, the UK home secretary will have two months to sign Mallya's extradition order. However, both sides will have the chance to appeal in higher courts in the UK against the chief magistrate's verdict.

  

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Comment on this article

  • Rudolf Rodrigues, Mumbai

    Sat, Mar 17 2018

    The main culprit is Grand Thornton who valued KF brand at 4100 cr on basis of which he could get huge loans from banks?? Actual brand value was not even 150 cr!!

    DisAgree Agree Reply Report Abuse

  • S. R. FERNANDES, Mangalore

    Sat, Mar 17 2018

    JUST TO LINK AADHAR CARD BANKS ARE SENDING SMS 100 TIMES, HOW COME THEY LET GO FREE ALL THESE CROSS COUNTRY RUNNERS ?`

    DisAgree Agree [12] Reply Report Abuse

  • Ivar, Mangalore

    Sat, Mar 17 2018

    Malya is innocent.
    Do not blame Malya for the blunders committed by Indian banks.

    DisAgree [9] Agree [11] Reply Report Abuse

  • hemanth, Bangalore

    Sat, Mar 17 2018

    MMS was PM when Banks gave loan to Mallya. So what our "Great Economist" was doing?

    DisAgree [20] Agree [7] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, Mar 17 2018

    Modi let Mallya escape in 2016 ...

    DisAgree [4] Agree [20] Reply Report Abuse

  • AMAR RAI, mlore

    Sat, Mar 17 2018

    Dawood also left india do you know who is ruling that time....................?

    DisAgree [7] Agree [6] Reply Report Abuse

  • hemanth, Bangalore

    Sat, Mar 17 2018

    Why MMS helped him to loot money in 1st place?

    DisAgree [18] Agree [3] Reply Report Abuse

  • Jenifer, Mangalore

    Sat, Mar 17 2018

    Hemanth,

    You are forgetting that Mallya was BJP RS member when he left country and he left with diplomatic immunity. BJP did not suspend him despite so many banks had so much complains against the KF owner. Not even moths after it came to open that he fled.

    What do you expect UK to do now, leave alone your cry-baby complain against MMS or Congress during whole rule were the loans sanctioned. A birds wings are clipped when its down, not after it flew away.

    DisAgree Agree [14] Reply Report Abuse

  • Ashok Shetty, udupi

    Sat, Mar 17 2018

    Ask moily sir,He will tell....................... how to get the ticket

    DisAgree [3] Agree [2] Reply Report Abuse

  • Ken, Mlore/DXB

    Sat, Mar 17 2018

    By the way the report is written, it looks like Vijay Mallya, has a point to prove, which is a fact, which cannot be undermined or overrules.
    1. How did banks go against their own guidelines. A common man has like me, have to put up with so called collateral, and signing of so many forms, and have to get approvals, from God knows who up the banking corrupt chain of command.
    2. We are reminded by warning notices, in case we cannot fulfill our obligations of loan repayments, and we will not be given a second loan, without due permissions. How did VM get so many loans from so many banks.
    Moreover, we are taught while working for corporate whose offices are in US and Europe about privileged conversation between employee and an attorney, and this is privileged. Full Stop. Guess our lawyers need to be trained better to understand such codes are not admissible in a court of law in US and Europe.
    The case is as good as closed, or will drag on for eternity. Instead of blaming businessmen, who misuse and run with the money, we first need to understand the root cause of the problem is our system, which are easily bypassed, with a dont care damn attitude, when it comes to the rich and the famous, but an ordinary citizen will be subjected to all we care attitude.
    We have along way to go towards a proper system, wherein one is made accountable, no matter who he or she is and punishment is justified based on the law for the crime committed.

    DisAgree Agree [8] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, Mar 17 2018

    Vijay Mallya has bribed every Tom, Dick & Harry all over the World ...

    DisAgree [2] Agree [17] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Sat, Mar 17 2018

    UK judge is absolutely right. First catch hold of the bank officials and the politicians who are hand in glove and took commissions. Automatically things will fall in place. Pull the ears and the head will come in naturally. Why not recover money from those Bank officers who approved his loan.

    DisAgree Agree [18] Reply Report Abuse

  • sri_elder, Karkala

    Sat, Mar 17 2018

    MMS himself was a RBI governor once..
    And all the banks reports to RBI

    DisAgree [10] Agree [5] Reply Report Abuse

  • Jenifer, Mangalore

    Sat, Mar 17 2018

    MMS was ONCE governer, Mallya was running RS member at the time he fled out of diplomatic immunity.

    Now recall the party that appointed him as member to RS despite of the open fact of Mallya being in dispute with his employees over his inability to pay them because of his bankruptcy. Was MMS in the party that appointed him as RS member ?

    DisAgree [1] Agree [9] Reply Report Abuse

  • Vincent Rodrigues, Bengaluru/Katapadi

    Sat, Mar 17 2018

    Most of the big loans from the banks are given in violating the banking rules in our country and thereafter lack of proper follow up for recovery as well.

    DisAgree Agree [16] Reply Report Abuse


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Title: Obvious Indian banks broke rules in Vijay Mallya case: UK judge



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