ED seeks 'fugitive offender' tag for Vijay Mallya in first case under new legislation, seeks to confiscate assets worth Rs 12,500 crore

The ordinance makes provisions for special courts under the Prevention of Money Laundering Act, 2002 to declare a person as a fugitive economic offender and order immediate confiscation of assets.

Published: 22nd June 2018 12:57 PM  |   Last Updated: 23rd June 2018 05:16 AM   |  A+A-

Fugitive business tycoon Vijay Mallya (File | EPS)

By Express News Service

NEW DELHI: Seeking to send a strong signal to economic offenders, the government has set the ball rolling to confiscate all the properties of fugitive Vijay Mallya located in India valued at Rs 12,500 crore. Properties indirectly controlled by him will also be taken over.

Towards this goal, the Enforcement Directorate (ED) has filed an application before a special court in Mumbai under the recently promulgated Fugitive Economic Offenders Ordinance, which empowers the central probe agency to confiscate “all linked assets” of an absconding loan defaulter.

The ED’s application seeks to declare Mallya as a ‘fugitive offender’ and confiscate his assets both movable and immovable.

As per the existing provisions of PMLA, the  ED can confiscate the assets only after the trial is over, which usually takes years.

This is the first case filed by the ED, which empowered to execute this Ordinance. The agency plans to undertake the same action against absconding designer diamond jeweller Nirav Modi and his uncle Mehul Choksi, accused in the $2-billion PNB fraud case.

Mallya is fighting a money laundering case in London as part of India’s efforts to extradite him from there in connection with an alleged loan default of Rs 9,000 crore of various banks.

In its application, the ED furnished evidences it filed as part of its two chargesheets against Mallya and others under PMLA and stated in both the cases, non-bailable warrants have been issued against him by the court.

Cases of frauds, cheque dishonour or loan default of over Rs 100 crore would come under the ambit of this Ordinance.

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Fugitive Economic Offenders Ordinance

The ordinance makes provisions for special courts under the Money Laundering Act to declare a person as a fugitive economic offender and order immediate confiscation of assets.
 

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