CBI defends its 'diluted' look-out circular against Vijay Mallya

INDIA-MALLYA/BRITAIN

Amidst the raging political controversy over whether beleaguered liquor baron Vijay Mallya was allowed to flee the country due to “alleged political interference", the CBI, which is the lead investigating agency in the loan fraud case, came out with a strong defence on why it’s look-out circular (LOC) was changed from “detention” of the economic offender to “no risk” category. The downgrading of the LOC subsequently allowed Mallya to leave the country on March 2 , 2016.

His exit came at a time when the investigations in the loan fraud case against him had gathered steam.

The issue rocked the Parliament and prompted the opposition Congress to accuse the government of alleged interference in trying to give Mallya a safe passage.

Sources in CBI said on Thursday that when the LOC of “detention” was first opened against Mallya in October 16, 2015, he was not in the country. However, when he was returning to the country, the Bureau of Immigration, on November 23, asked whether he should be detained. Sources said the agency sleuths rummaged through its files and found that there was no non-bailable warrant issued against him at that time and the probe was still in initial stages. In fact, sources said no bank had formally lodged a complaint and the LOC had been issued against him while he was in London. The FIR against Mallya had been registered by the CBI on July 29, 2015 on charges of criminal conspiracy and cheating and at that time, no bank had approached the agency with a formal complaint. The searches at his premises in Bengaluru and Mumbai were carried out in October and three days later the LOC had been issued.

“Technically, the CBI did not have substantial ground at that time to pursue his detention,” said an official. Moreover, since the economic offender was returning to the country and he was a Member of Parliament, the CBI decided to downgrade the look out circular.

This meant that Mallya would not to be detained but the agency must be alerted by “giving information” about his movements. Mallya returned to the country on November 24, a day after the LOC was downgraded.

Vijay Mallya had been travelling in and out of the country several times during that period.

In fact , between his first return to India on November 24, 2015 and when he finally fled on March 2, 2016, Mallya had travelled abroad four times and joined the probe on three occasions. He was questioned on December 9,10 and 11.

The agency is in an embarrassing spot, explaining the developments after the fugitive businessman left the country for good in March 2017. Now, in a sensational disclosure, he claimed that he met Union Finance Minister Arun Jaitley before he left the country. Mallya is fighting an extradition case in the UK court at the moment and is claiming that the case against him in India is untenable and false.

The Left parties, led by the CPI(M), have joined the Congress, accusing the government of shielding big fishes in banking fraud cases. CPI(M) general secretary Sitaram Yechury alleged that Mallya’s escape reconfirms that the government allows big defaulters to loot the country and scoot. A case in point is the PNB scam case where accused Nirav Modi and Mehul Choksi fled the country in January before the investigating agencies could wake up to the multi-million scam.