In a major breakthrough, a designated court under Fugitive Economic Offenders Law has summoned liquor baron Vijay Mallya for appearing before them on 27th August, within days of ED moving the court to declare him a ‘fugitive economic offender.’
In a major breakthrough, a designated court under Fugitive Economic Offenders Law has summoned liquor baron Vijay Mallya for appearing before them on 27th August, within days of the Enforcement Directorate’s moving the court to declare him a ‘fugitive economic offender’. A special PMLA (Prevention of Money Laundering Act) court on Saturday summoned the former ‘king of good times’ Vijay Mallya on August 27 under the recently promulgated Fugitive Economic Offenders Ordinance, 2018.
Last week, the ED (Enforcement Directorate) made its first official move to clampdown against big bank loan defaulters as it moved court against Vijay Mallya seeking to declare him a ‘fugitive offender’ and to confiscate his assets worth Rs 12,500 crore.
Notably, in a media statement earlier this week, Vijay Mallya said that on June 22, he filed an application before the Karnataka High Court “setting out available assets of approximately Rs 13,900 crores.” According to government data as on May 15, Kingfisher Airlines owes Rs 9,990 crore to a consortium of 17 public sector banks.
Notably, ther latest ordinance provides powers to the law enforcing agencies to attach and confiscate the proceeds of properties of economic offenders like bank defaulters or bank fraudsters fleeing the country, and seeks to deter economic offenders from evading the process of law by remaining outside the jurisdiction of Indian courts.
In response to potentially being declared a fugitive economic offender, Vijay Mallya recently tweeted, “I am asked for comment on being labelled a Fugitive Economic Offender. When I have placed assets on the table before the Hon’Ble Karnataka High Court in excess of the PSU Bank claims how can I be an Economic Offender ? The Fugitive part falls away.”
Following Mallya’s court application, Minister of State for External Affairs M J Akbar noted that if Mallya wanted to repay to the banks, he had many years in which he could have done so. Akbar was responding to a question posed on Tuesday about Vijay Mallya’s claims that he had tried to settle the dues and had become a victim.