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.
IBI questions bankers’ arrest
In an emergency meeting called by the Indian Banks Association in Mumbai on Friday, top bankers expressed concern over the arrest of the arrest of the Bank of Maharashtra brass for “taking bona fide decisions” and called for forming an independent committee to give clearances to initiate criminal proceedings against senior bankers
HUGE IDBI STAKE SALE TO LIC?
Life Insurance Corporation is likely to pick up a significant stake in IDBI Bank, reports said on Friday, triggering a rally in the bank’s shares on the BSE P19
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.
