National / World

No proof of 'fraud case' against Mallya, Indian govt has failed: Defence


London, Dec 5 (PTI): Vijay Mallya's defence team on Tuesday argued that there was no evidence to support the case of fraud presented against him by the government of India as the liquor baron returned to court in London on day two of his extradition trial.

The 61-year-old, wanted in India on charges of fraud and money laundering amounting to around Rs 9,000 crores, was in the dock at Westminster Magistrates Court for his defence, headed by barrister Clare Montgomery.

Montgomery opened her arguments by stating that there was no evidence to support the case of fraud.

On the opening day of the trial, the Crown Prosecution Service (CPS), arguing on behalf of the Indian government, had asserted that the embattled liquor baron had a "case of fraud" to answer.

Montgomery claimed that the evidence presented by the CPS, on the direction of the Indian government, to prove a case of fraud amounted to "zero", which she said was a "critical failing on the part of government of India".

She claimed that the government does not have a credible case to support the argument that the borrowing by Mallya was fraudulent and he had no intentions to pay back the loans he sought because his profit projections for loss-making Kingfisher Airlines were unreliable.

"The reality is that the profitability of an airline depends on economic factors, which are largely cyclical and largely out of the control of the airline itself," she said.

Indicating that it would be plausible to conclude that any loan default was the result of "business failure", she presented internal company assessments and bank documents to prove that all numbers related to the struggling airline were known to the bankers and there was "no attempt to mislead by over-valuing the worth of the brand".

The prosecution on Monday had laid out what it termed as "three chapters of dishonesty" by the former Kingfisher Airlines boss the first being misrepresentations to various banks to acquire loans, then how he misused the money and finally his conduct after the banks recalled the loans.

"Instead of acting as an honest person and doing what he could to meet his obligations, he sets about erecting lines of defence," CPS barrister Mark Summers had said.

The charge of money laundering, for which Mallya had been re-arrested in October, is being focussed on by the CPS less at this stage.

Summers told the court that the Indian government says there are reasons why a court can conclude that the bank loans at the centre of the fraud case were ones the "defendant (Mallya) never intended to repay".

While Kingfisher Airlines and the airline industry were in "intensive care", Mallya chose to palm off the losses to banks, in particular state-owned banks.

The opening day's proceedings were concluded with an assertion by the CPS that it had "shown by virtue of evidence a prima facie case"against Mallya and the hearing should now move to the next phase of any "bars to extradition".

The next phase is when factors such as prison conditions in India are likely to take centre-stage.

The CPS had earlier admitted that there may have been "irregularities" in the internal processes of the banks sanctioning some of those loans but that would be a question to be dealt with at a later stage in India.

"The focus of our case will be on his (Mallya's) conduct and how he misled the bank and misused the proceeds," Summers said, as he presented a detailed chronology of events with specific focus on a loan sought by Kingfisher Airlines from IDBI bank in November 2009.

His erstwhile Kingfisher Airlines owes several Indian banks around Rs 9,000 crores.

Mallya, who was arrested by Scotland Yard on an extradition warrant in April this year, has been out on bail on a bond worth 650,000 pounds.

His trial is scheduled to end on December 14, with Wednesday and Friday marked as non-sitting days.

A timeframe for a judgement in the case, being presided over by Judge Emma Louise Arbuthnot, will be determined only at the end of the trial and once the closing arguments have been made.

The tycoon has been on self-imposed exile in the UK since he left India on March 2, 2016.

If the judge rules in favour of extradition at the end of the trial, the UK home secretary must order Mallya's extradition within two months.

However, the case can go through a series of appeals in higher UK courts before arriving at a conclusion.

Comment on this article

  • peacelover, India

    Wed, Dec 6 2017

    Mallya did one big mistake, otherwise this 9000 cores is not a big amount, if you are a friend of our beloved PM. Adani vows 72000 crores to bank and part of this loan is already waived. Rest will be waived in frequent intervals.

    DisAgree Agree [6] Reply Report Abuse

  • RAVI, Mangalore

    Wed, Dec 6 2017

    This all Caste-ism created by Modi only Gujarati people can richer in India.

    DisAgree Agree [9] Reply Report Abuse

  • mohan sr., m

    Wed, Dec 6 2017

    Indian lawyers are more on politics than on case....... And also applying falls application .... thats why failed....

    DisAgree Agree [8] Reply Report Abuse

  • parvez hamad, mangalore/ dubai

    Wed, Dec 6 2017

    i like mr malya kuch bhi bolo acha chuna lagaya hehheheheh

    DisAgree Agree [6] Reply Report Abuse

  • Anilkumar, Mangalore

    Wed, Dec 6 2017

    All this drama of extradition is an eye wash. No serious attempt seems to be made. Mallya will successfully evade refunding the loans which is part and parcel of plan drawn along with those interested in their share.

    DisAgree Agree [5] Reply Report Abuse

  • I wish I was there, Bahrain

    Wed, Dec 6 2017

    The burden of proof is a mockery of the system because the proof is often lies. A thousand curses on you and those who produced you, Mallaya.
    Do we really want fair trials? No, we do not. We want justice, and quickly. And justice is whatever we believe it to be on a case-by-case basis.

    DisAgree [1] Agree [3] Reply Report Abuse

  • Ronym, M'lore/Abudhabi

    Wed, Dec 6 2017

    YOU HAVE NO RIGHTS TO CURSE SOMEONE DIRECTLY AND THOSE WHOM PRODUCED HIM. YOU CAN BLAME MOCKERY OF SYSTEM. I AM A FAN OF HIM....

    DisAgree [2] Agree [2] Reply Report Abuse

  • Vincent Rodrigues, Bengaluru/Katapadi

    Wed, Dec 6 2017

    Mallya will come out successfully and prove not guilty because of our weak defence

    DisAgree [1] Agree [14] Reply Report Abuse

  • G R PRABHUJI, Mangalore

    Wed, Dec 6 2017

    If they file case means , many big shots will go behind the bars in India.

    DisAgree [1] Agree [15] Reply Report Abuse

  • Praveen, Mangalore

    Wed, Dec 6 2017

    you are right..many congi leaders

    DisAgree [3] Agree [2] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Wed, Dec 6 2017

    Next clean chit will be for Adani for defaulting Rs. 76,000 Crores ...

    DisAgree [2] Agree [17] Reply Report Abuse

  • Gabriel, sagar

    Wed, Dec 6 2017

    More money means more justice. No money means no justice. Criminal has more looted money. Hence Justice has gone for a holiday.

    DisAgree Agree [11] Reply Report Abuse

  • KRPrabhu, Bangalore/Mangalore

    Wed, Dec 6 2017

    Boda sheera...?😀

    DisAgree [2] Agree [5] Reply Report Abuse

  • geoffrey, hat hill

    Wed, Dec 6 2017

    First his safe exit was facilitated by revoking CBI's order to immigration to detain him and now this drama so that the bhakths can keep ranting 'he's doing something at least' . Sarvam Jumlamayam.

    DisAgree [2] Agree [16] Reply Report Abuse

  • Joseph F. Gonsalves, Bannur, Puttur / Mangalore

    Tue, Dec 5 2017

    Mallya has offered to State Bank of India 4000-5000 crores which was outrightly rejected by the SBI.

    THIS WAS A GROSS BLUNDER MADE BY THE SBI.

    THE DEFENSE TEAM OF INDIA SENT BY CHAAIWAALA P.M., IS VERY WEAK.

    MAY THERE WAS SOME UNDERSTANDING INBETWEEN V. MALLYA AND THE BJP.

    I SCRATCH YOUR BACK.
    YOU SCRATCH MY BACK.

    DisAgree [1] Agree [14] Reply Report Abuse

  • Anees, Karkala /Dubai

    Tue, Dec 5 2017

    Where is 56 inch??????? So fekugiri to people????

    DisAgree [2] Agree [14] Reply Report Abuse

  • Swamy, Mangalore

    Tue, Dec 5 2017

    One more 'Clean Chit' but this is special a foriegn clean chit to fool people.

    DisAgree [5] Agree [26] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Dec 5 2017

    Next clean chit to Adani (Rs. 76,000 Crores) ...

    DisAgree [1] Agree [13] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Dec 5 2017

    Narendra Modi has goofed Again ...

    DisAgree [6] Agree [31] Reply Report Abuse

  • Ivar, Mangalore

    Wed, Dec 6 2017

    Its India, including yourself!

    DisAgree [3] Agree [1] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Wed, Dec 6 2017

    I did not permit him to flee India ...

    DisAgree Agree [3] Reply Report Abuse

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Title : No proof of 'fraud case' against Mallya, Indian govt has failed: Defence


 
 
 
 

 
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