Big blow to Mallya as MEA blocks passport

New Delhi

The diplomatic passport of the flamboyant 60-year-old industrialist, who has been in Britain for over a month and has refused to appear before the ED, was suspended by the External Affairs Ministry on the recommendation of the agency. “On the advice of the Enforcement Directorate, the Passport issuing Authority in the MEA has on Friday suspended the validity of Vijay Mallya’s diplomatic passport with immediate effect for a period of 4 weeks, under Section 10 A of the Passports Act, 1967.

“Mallya has been asked to respond within one week as to why his passport should not be impounded or revoked under section 10(3)(c) of the Passports Act, 1967. If he fails to respond within the stipulated time, it will be assumed that he has no response to offer and the MEA will go ahead with the revocation,” MEA Spokesperson Vikas Swarup said.

Mallya, who holds a diplomatic passport on account of his status as Member of Parliament, had left the country on March 2, the day the consortium of 13 banks that had lent him money had closed in on him by moving the Debt Recovery Tribunal. The consortium also later rejected his offer of paying an initial instalment of Rs. 4,000 crore and settle the rest of the amount later. Sources said the action against Mallya was taken as  government was seriously concerned about the misappropriation of funds of banks by wilful defaulters and fraudsters and identified the Kingfisher Airlines as one such. They said as of February this year, the Airlines has dues to the tune of Rs 9,432 crore and it has wilfully defaulted on paying back to the consortium of 13 banks.

Against this background, the ED moved the MEA for revocation of his passport. Sources said the government is committed to bringing to book wilful defaulters and to recover public money from them.