"Because Of Your Client, Most Borrowers Are Facing LOC's": Bombay HC Tells Vijay Mallya's Counsel In Plea Challenging Economic Offenders Act

The Bombay High Court on Friday said former liquor baron Vijay Mallya had become the 'first cause' for issuances of 'Look Out Circulars' (LOCs) against several borrowers in the country.

A division bench of Justices Kalpathi Shriram and Jitendra Jain made the remark while hearing a plea filed by Mallya, challenging the constitutional validity of the Fugitive Economic Offenders Act, 2018. The plea also challenged the January 5, 2019, order of a special court in Mumbai, by which Mallya was declared a 'fugitive economic offender.'

The judges orally remarked that it is because of Mallya that most of the borrowers in the country are now facing LOCs.

"It is because of your client that most borrowers are facing LOCs. In fact, he is the first cause," the bench told Mallya's lawyer.

Appearing for Mallya, advocate Ravi Gandhi urged the bench to adjourn the matter for a few weeks so that he could take 'appropriate instructions' from his client.

"What instructions will you get?" the judges asked, to which Gandhi reiterated his request for adjourning the matter.

The counsel apprised the bench that the petition was filed in April 2019 and 'much water has flown' since then. He explained how the plea was filed to challenge his proclamation as a 'fugitive offender.' 

"And then much water has flown milords. There have been attachments and selling of properties etc. Then some dispute between the authorities and my client..." Gandhi submitted.

"But in all this, he (Mallya) is enjoying," the judges, remarked orally, in a lighter vein.

Eventually, the matter was adjourned for a week, for Gandhi to obtain 'instructions'. The bench made it clear that if he fails to obtain any instructions, it will proceed to dismiss the plea.