Saturday, Apr 22, 2017

The arrest of Indian tycoon Vijay Mallya last week by Scotland Yard on an extradition warrant by Indian authorities, is a welcome effort in bringing alleged fugitives from justice to task. Mallya was declared a proclaimed offender by India’s investigative agencies last year and is accused of fraud, money laundering and deliberate defaults on bank loans that eventually grounded his Kingfisher Airlines. However, Mallya’s reaction of dismissing his arrest and his appearance at Westminster magistrates court as “expected”, points to the difficult and complex process that lies ahead for both the UK and India in bringing the extradition request to a logical conclusion.

For India, it a positive development that tangible efforts are finally being made to bring such alleged financial fugitives to justice. The focus must be on a swift and competent completion of the extradition hearings and ensure that law enforcement agencies do not leave any legal loopholes that allow a travesty of justice once again.

But Mallya’s high-profile case also offers the scope for a deeper reflection into several associated issues. There must be robust systems in place within the Indian financial reporting standards that raise the flag of abuse and corruption in such cases at the very beginning. It’s impossible for Mallya to raise billions of Indian rupees in loans from government banks at unfavourable terms to the public, and then conveniently escape the country, without political patronage. India thus needs not only stringent regulations but also an earnest political willpower to battle corruption and crony capitalism. The mere optics of a protracted extradition battle will not prevent such episodes in future.

The incongruous sight of Mallya’s mansion in the sleepy Hertfordshire village of Tewin is also a reminder that the UK could potentially tighten its domicile laws that are seen to be exploited by alleged financial offenders to seek shelter and take unfair advantage of its robust legal systems.

Gulf News

Gulf News 2017. All rights reserved.