Declaring me fugitive offender is like giving 'economic death penalty': Vijay Mallya tells Bombay HC

Mallya made his statement through his counsel during arguments on his plea challenging several provisions of the Fugitive Economic Offenders Act that came into existence in August last year.

Published: 24th April 2019 07:07 PM  |   Last Updated: 24th April 2019 07:07 PM   |  A+A-

Vijay Mallya

Vijay Mallya (File photo| Vijay Mallya)

By PTI

MUMBAI: Embattled liquor tycoon Vijay Mallya told the Bombay High Court Wednesday that by declaring him a fugitive economic offender and allowing attachment of his assets, a special court had awarded him an "economic death penalty".

Mallya made the statement through his counsel Amit Desai before a bench of justices Ranjit More and Bharati Dangre, during arguments on his plea challenging several provisions of the Fugitive Economic Offenders Act that came into existence in August last year.

READ MORE | Vijay Mallya asks SBI to disclose 'legal fees' spent to recover funds

"My debts and the interest on such debts are mounting. I have assets to pay off these debts but the government won't allow the use of these assets to clear the debts. I have no control over my properties," the businessman said.

"This is an economic death penalty that has been awarded to me," he said.

Desai urged the court to pass an injunction against the proceedings related to confiscation of his assets across the country.

The bench, however, refused to grant any interim relief on the petition.

A special court here had in January declared Mallya a fugitive economic offender (FEO) under provisions of the Fugitive Economic Offenders Act.

Later, Mallya approached the high court, challenging the provisions of the act that permit, among other things, confiscation of assets and placing them under the control of the Union government.

He also filed another petition challenging the special court order that declared him an FEO which was being heard by another division bench of the high court.

Desai argued that the FEO Act was "draconian" and "unconstitutional" as it allowed the Centre to confiscate everything, irrespective of whether a property was bought from the proceeds of a crime or not.

Mallya's plea was opposed by the Enforcement Directorate's (ED) counsel D P Singh, who argued that the Act was not draconian at all.

"This act is not draconian. In fact, this act prohibits prosecuting agencies from acting on their own. For everything, including attachment of properties, we are supposed to get a court order that is passed only after hearing all sides," Singh said.

"This act is meant for Mallya-like people only. It is not an ordinary legislation. The act has been constituted to bring back defaulters who have defaulted amounts of Rs 100 crore and above," the counsel said.

The court, too, noted that the legislation was a sound one and not draconian.

"We understand this legislation is a little harsh. But that is because it deals with draconian situations," the bench said. It, however, issued a notice to the attorney general to respond to Mallya's plea challenging the act.

 

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp