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Court Declares Vijay Mallya a 'Fugitive Economic Offender'

Court Declares Vijay Mallya a 'Fugitive Economic Offender'

Under the particular laws, any person who has travelled outside the country after committing an economic fraud and refused to appear before the court to face trial or those who have been issued non-bailable warrants could be declared as fugitive economic offenders.

As per the new law, a special FEOA court can order the confiscation of a FEO's properties, including those which are benami, and the proceeds of crime in and outside India. Special judge M S Azmi allowed in part a plea filed by the Enforcement Directorate (ED) a year ago asking that the businessman be declared a fugitive economic offender.

Absconding business tycoon Vijay Mallya has been declared a fugitive economic offender by a special anti-money laundering court in Mumbai.

The Enforcement Directorate had requested the Prevention of Money Laundering Act court in Mumbai that Mallya, who is now in the United Kingdom, be declared a fugitive and his properties be confiscated and brought under the control of the Union government. Facing cases registered by the ED as well as the Central Bureau of Investigation, he is wanted for alleged fraud and money laundering amounting to an estimated '9,000 crore. Patra claimed Singh directed his secretary to help Mallya, and on November 14, 2011, in a press conference, the former PM had said that ways needed to be found to help Kingfisher.

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In July 2018, the ED had filed an application before the court, seeking to declare Mallya a "fugitive economic offender" under the Fugitive Economic Offenders Act, 2018 and had also sought to immediately confiscate his assets of over Rs. 12,500 crore. The BJP spokesperson said the decision to bring forward the tough law to declare people economic offenders could only be done by the Modi government that was uncompromising on fighting corruption.

The Congress criticised the BJP for taking credit for the action against Mallya, PTI reported.

The Enforcement Directorate, which had moved the application past year, had reportedly sought confiscation of Mallya's assets worth Rs 12,500 crore, both movable and immovable. "BJP feels that everything happened after its government came to power in 2014".

The intervenors include the State Bank of India, Diageo Plc, Standard Chartered Bank, Mr. Mallya's step mother, Ritu Mallya, the official liquidator of the Karnataka High Court and Heineken NV.