HC bars debt-ridden man from going out, cites Mallya example
The Karnataka High Court barred a debt-ridden businessman from going abroad, citing Vijay Mallya's case. The man, Nitin Shambhu Kumar Kasliwal, owes ?6,494 crore to banks including Punjab National Bank, Central Bank, and UCO Bank, among others. The prosecution expressed that it fears if he is allowed to go abroad, the banks might not be able to recover their money.
Vijay Mallya's financial fraud and eventual escape from the law enforcement has invariably become a lesson for many. Investors, today, will think thoroughly before investing their money as the courts have now taken cognizance of the gravity of such crimes and have began taking stern decisions to avoid similar frauds.The Karnataka High Court today refused to give the passport of the promoters of S Kumar's a company owned by Nitin Shambhu Kumar Kasliwal. Promoter Kasliwal had borrowed an amount close to Rs 6,500 crore from various banks.The banks that have sought recovery from Kasliwal include Punjab National Bank, UCO Bank, Union Bank of India, Central Bank, Jammu Kashmir Bank, Indian Bank and IDBI Bank.Kasliwal appealed before the court to travel abroad, however, it seems the Mallya incident have influenced the decision making of the court which refused to handover the passport.Kasliwal was declared a wilful defaulter by UCO bank and in December 2016, the Debts Recovery Tribunal had seized his passport after the notification.The fear expressed by the prosecution was that of they let him to travel abroad, Kasliwal may escape like Mallya did and they will not be able to recover their debts.According to the advocate representing the banks, Kasliwal owes Rs 6,494 crore as in July 2015.NO RIGHT TO IMPOUND KASLIWALKasliwal's advocate argued in court saying that the DRT had no right to impound the passport and that Kasliwal was allowed to travel abroad earlier too. The advocate added that the DRT and their client had complied with all the conditions imposed on him.S Kumar's has been a big clothing brand whose fabric was being produced in factories located in Mysuru in Karnataka and Dewas in Madhya Pradesh. The company ran into losses during the economic slowdown and the banks took the legal route to recover the debts that Kasliwal owed.S Kumar's had introduced the famous Scottish fabric brand Reid and Taylor in India of which Amitabh Bachchan was the brand ambassador. The courts have now ruled that Nitin Shambhu Kumar Kasliwal will have to stay in India till he repays the debt.Also Read:ED hopeful of favourable order in Vijay Mallya extradition case by mid-December