Seeking a fugitive offender tag for liquor baron Vijay Mallya, the Enforcement Directorate on Friday moved a Mumbai court against the businessman under a new law, the Fugitive Economic Offenders Ordinance. The agency has also sought court’s permission to confiscate all his assets worth Rs 12,500 crore — both movable and immovable– which belongs to Mallya and his companies. Reports said that the new law empowers the agency to confiscate all the assets of a fugitive loan offender. In a bid to seek a fugitive offender tag for Vijay Mallya from the court, the agency has gone through all the evidences that were there in past two charge sheets, filed under the Prevention of Money Laundering Act (PMLA). 

Mallya is facing the money laundering charges in London while the Indian legal system is making efforts to bring him back to India and face the charges of Rs 9000 crore IDBI Bank-Kingfisher Airlines loan-default case, which was filed in June 2017. 

Earlier, the probe agency has also accused Mallya of not disclosing all his assets with the lender during a personal guarantee agreement, which was restructured in December 200. The ED said that Mallya had total assets over Rs 3,164.65 crore, while Mallya had claimed only Rs 1,395 crore only at the time of the agreement.

A few days back, in a bid to recover the alleged dues of 13 Indian banks, the UK High Court ordered Mallya to a minimum of 200,000 pounds towards cost borne by the respective banks. 

Coming to the new Fugitive Economic Offenders Ordinance, 2018, the authorities will be more empowered to confiscate assets of loans defaulters. Besides Mallya, the law was approved to confiscate assets of other offenders including Nirav Modi and Mehul Choksi. 

 

 

 

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