New Delhi, June 22 (UNI) The Enforcement Directorate (ED) on Friday filed an application before the court for declaring liquor baron Vijay Mallya a fugitive economic offender under newly promulgated Ordinance and sought its intervention in confiscation of his assets worth over Rs 12500 crore, an official statement stated here.
“This is the first case under the newly promulgated Fugitive Economic Offenders Ordinance of Government of India,” the statement said.
The Fugitive Economic Offenders Ordinance, 2018 was promulgated on April 21, 2018. It seeks to confiscate properties of economic offenders who have left the country to avoid facing criminal prosecution under existing legally system.
The probe agency moves comes after the registration of two separate Enforcement Case Information Reports (ECIRs) under Money Laundering Act (PMLA) for investigation into the offence of money laundering, against Mallya, Kingfisher Air Lines (KAL), United Breweries Holdings (UBHL) and others.
The Mumbai court has taken cognizance of both the cases and has issued fresh NBWs against Mallya in both the cases.
The investigation revealed a criminal conspiracy since inception for obtaining and sanctioning of bank loan to KAL in gross violations of established or prescribed procedures with no intention for repayment of loan.
Mallya fled to London without repaying over Rs 9,000 crore of loans to consortium of banks. Effort to extradite Mallya is under process in UK courts.
The extradition hearings against Mallya were conducted before the Westminster Court, London, which is almost complete and the final verdict being expected soon, the officials said.
“Under the newly promulgated Ordinance, the confiscation will be more easy and very less time taking. Earlier, only proceed of crime would have to be confiscated but now all movable or immovable properties, controlled directly or indirectly by the proclaimed offenders, can be confiscated by the order of the court”, added the officials.
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