June 22, 2018:

Application seeks to immediately confiscate about ₹12,500 crore assets of Vijay Mallya and his companies, both movable and immovable.

On Friday, India made its first official move to clampdown against big bank loan defaulters under Fugitive Economic Offenders Ordinance, as the Enforcement Directorate (ED) moved a Court against liquor baron Vijay Mallya seeking to declare him a ‘fugitive offender’ and to confiscate his assets worth ₹12,500 crore.

According to Sources, Agency filed an application before a Mumbai Court under recently promulgated Fugitive Economic Offenders Ordinance that empowers it to confiscate all the assets of an absconding Loan Defaulter.

ED has furnished evidences in its two charge sheets, filed under Prevention of Money Laundering Act (PMLA) in past, to make a case for seeking a fugitive offender tag for Vijay Mallya from Court.

Vijay Mallya is contesting these money laundering charges in London as part of India’s efforts to extradite him from there and face the legal system here in connection with an overall alleged loan default of over ₹9,000 crore of various banks.

As per the existing process of law under the PMLA, ED can confiscate the assets only after the trial in a case finishes which usually takes many years.

Fugitive Economic Offenders Bill, 2018 was introduced in Lok Sabha on March 12 but couldn’t be taken up due to logjam in Parliament over different issues.

Union Cabinet on April 21 approved the Ordinance and President gave his assent to promulgation of the same a day later.

Ordinance makes provisions for the Special Courts under Prevention of Money Laundering Act, 2002 to declare a person as a Fugitive Economic Offender and order immediate confiscation of the assets.

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

Source Hindu

Picture Source :