Mallya issued non-bailable warrant in brand promotion case
A Delhi court has issued an open-ended non-bailable warrant against Vijay Mallya in connection with a 1995 FERA violation case. The ED alleged Mallya violated provisions of FERA in arranging funds to advertise his liquor products abroad. Mallya had reportedly paid ?1.3 crore to a UK firm for displaying the Kingfisher logo in Formula One World Championships without RBI approval.
A Delhi court has issued an open-ended non-bailable warrant against Vijay Mallya in connection with the the 1995 FERA violation case, reported news agency ANI. An open-ended non-bailable warrant does not carry a time limit for execution. The Enforcement Directorate had alleged that Vijay Mallya had violated the provisions of Foreign Exchange Regulation Act (FERA) in arranging funds to advertise his liquor products abroad over a decade ago.THE CASEThe ED wanted to question Vijay Mallya in connection with a contract signed in December 1995 with London-based firm Benetton Formula Ltd for promotion of the Kingfisher brand abroad.Vijay Mallya had allegedly paid 200,000 dollars to the British firm for displaying the Kingfisher logo in Formula One World Championships in London and some European countries in 1996, 1997 and 1998.The money was allegedly paid without prior approval from the Reserve Bank of India in violation of FERA norms.INDIA SEEKING MALLYA's EXTRADITIONVijay Mallya left India on March 2, 2016 for London, days after a consortium of 17 banks moved the Debt Recovery Tribunal to hear a July 2013 petition to recover dues of Rs 9,081 crore, including interest, that was loaned to his now defunct Kingfisher Airlines. India has handed over a formal request to the British High Commission for his extradition. (with inputs from PTI)ALSO READ: