CBI Issues NBW To Vijay Malaya

Written by:

Adv Samman Singh

Updated: 28-03-2024

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A Special CBI Court has issued a non-bailable warrant against Vijay Mallya in a loan default case involving Indian Overseas Bank for Rs 180 crore. SP Naik Nimbalkar, a Special CBI Judge, issued the non-bailable warrant against Mallya on June 29. The judge noted that the situation was appropriate for issuing a non-bailable warrant.

The issuing process in the form of summons against accused number one serves no purpose. Because accused no.1 Vijay Mallya has fled and been classified a fugitive, and NBWs against him in other matters are pending execution, this is an appropriate case to issue open-ended NBW against accused no.1 Vijay Mallya in order to secure his presence," according to the judgment.

The Reserve Bank of India (RBI) directed the complainant bank (in this case), State Bank of India (SBI), in August 2010 to consider Kingfisher Airlines Ltd (KAL)'s proposal for restructuring existing facilities by relaxing the relevant guidelines as a one-time measure for the aviation sector, according to the probe agency.

As a result, the lenders, including IOB, restructured KAL's existing credit facilities under a Master Debt Recast Agreement (MDRA). The KAL signed the arrangement with an 18-bank consortium.

Vijay Mallya has been labeled a fugitive economic offender, and the Enforcement Directorate (ED) is investigating him under the Prevention of Money Laundering Act. He is at present based in London and the Indian government wants him to be extradited.

The NBW was issued in connection with a cheating case which was registered under Cr.P.C section 156 (3) by the CBI for embezzling money, where, as a promoter of the erstwhile Kingfisher Airlines deliberately failed to repay a Rs180 crore loan.

The loan was availed by Kingfisher airlines from the fiscal year 2007-08 to 2011-12. Vijay Mallya's loan default caused a loss of ₹141.91 crore, according to the chargesheet filed against the private-sector airline. Converting loans into shares led to a loss of ₹38.30 crore.

What is Non – Bailable Warrant?

When a court issues an NBW, it authorises the police to arrest and bring the person named in the warrant before the issuing court. Based on the facts of the case, the court will decide whether to grant bail or remand the accused to custody. Courts issue Non-Bailable Warrants under the Criminal Procedure Code as a preventive measure to ensure the attendance of individuals accused of serious crimes or prospective witnesses.

Reasons for issuing nonbailable warrants

Failure to Appear: If a witness or an accused person refuses to attend court after being served with summon or bailable warrants then the court may order NBW to arrest such a person.
Evasion of Arrest: In essence the court may release an NBW if, in a situation where a person accused of a non-bail-able offense is evading arrest either by not obeying the police or hiding.
Chances of Evading Justice: The court may issue an NBW if there is a reasonable belief that the accused would abscond or avoid justice by failing to appear in court, tampering with evidence, influencing witnesses, or impeding the investigation.

The constitutionality of nonbailable warrants

The right to a fair trial is guaranteed in Article 21 of the Indian Constitution, which includes the right to be heard and the opportunity to submit evidence. Issuing NBWs can be viewed as a means of ensuring that persons involved in criminal cases, whether as accused or witnesses, remain present throughout the proceedings.
Judicial authorities can help prevent the abuse and obstruction of the legal procedure, the extent of the witness testimony, and the evasion of the accused person.
What is already contained in Article 21 is the right to personal liberty, but this is not an absolute right. This has to be based on rights of other persons, objectives of society, as well as other important goals, like effective justice delivery and fighting crime.

NBWs are arranged between the accused’s rights, the demand of the fair trial, and the interest of justice.

It stops people from fleeing judicial processes, tampering with evidence, or interfering with the course of justice, hence improving the criminal justice system's overall effectiveness and impartiality.

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