Vijay Mallya to be first person booked under new fugitive law
VIjay Mallya
The Fugitive Economic Offenders Ordinance, 2018 aims to deter economic offenders from evading the law by remaining outside the jurisdiction of Indian courts
The Enforcement Directorate on Monday requested a special court to tag liquor baron Vijay Mallya under the newFugitive Economic Offenders Act. It calls for “immediate confiscation” of attached assets valued at over Rs 12,400 crore of Kingfisher Airlines owner.
This is the first case under the new ordinance where the agency will approach the court to seek an official declaration to categorise Mallya as a “fugitive” based on its prosecution complaint — charge sheet — filed under the Prevention of Money Laundering Act (PMLA).
The Fugitive Economic Offenders Ordinance, 2018 aims to deter economic offenders from evading the law by remaining outside the jurisdiction of Indian courts.
On Monday, the Enforcement Directorate charged embattled liquor baron Vijay Mallya and his two firms for fraudulently "diverting" over Rs 3,700 crore bank loan funds to a UK-based F1 motorsport firm, a T20 IPL team, and for enjoying private jet sorties.
The agency named Mallya and his firms - Kingfisher Airlines Limited and United Breweries (United Breweries Holdings Limited) - in its voluminous prosecution complaint filed before a special Mumbai court under the Prevention of Money Laundering Act.
Mallya will be given six weeks to contest the charges in court, as per the rules in the ordinance. If he fails to do so, he will be labelled a “fugitive economic offender”.
The ED has already attached assets worth over Rs. 6,000 crore belonging to Vijay Mallya, who is living in the UK and has not appeared before the ED, despite summoning him.
PTI reported yesterday that after this charge sheet, the central probe agency would immediately seek permission from a court to "confiscate" assets worth more than Rs 9,000 crore of thebeleaguered businessmanand his firms under the recently promulgated Fugitive Economic Offenders Ordinance.
The ED last year filed its first chargesheet against Mallya, now in London, in the alleged Rs 900-crore IDBI Bank-Kingfisher Airlines loan fraud case.