Agency files application before Mumbai court under new ordinance.
Mumbai : India on Friday made its first official move to clamp down against big bank loan defaulters under a new law 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 Rs 12,500 crore.
Officials said the agency filed an application before a Mumbai court under the recently promulgated Fugitive Economic Offenders Ordinance that empowers it to confiscate all assets of an absconding loan defaulter.
The application seeks to immediately confiscate about Rs 12,500 crore assets of Mallya and his companies, both movable and immovable. This is the first case under the newly promulgated Fugitive Economic Offenders Ordinance of Government of India.
The ED has furnished evidences in its two charge sheets, filed under the Prevention of Money Laundering Act (PMLA) in the past, to make a case for seeking a fugitive offender tag for Mallya from the court.
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 Rs 9,000 crore of various banks.
As per the existing process of law under the PMLA, the ED can confiscate the assets only after the trial in a case finishes which usually takes many years.
The Modi government brought the fugitive ordinance as “there have been instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings,” the government said. The Fugitive Economic Offenders Bill, 2018 was introduced in the Lok Sabha on March 12 but couldn’t be taken up due to logjam in Parliament over different issues.
With Parliament being adjourned sine die, an ordinance was proposed. The Union Cabinet on April 21 approved the ordinance and the President gave his assent to promulgation of the same a day later.
The ordinance makes provisions for special courts under the Prevention of Money Laundering Act, 2002 to declare a person as a fugitive economic offender and order immediate confiscation of assets.
“A Fugitive Economic Offender is a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution,” the government said.
RCN against Nirav Modi likely soon
New Delhi: The Interpol is on Friday expected to issue a red corner notice (RCN) against fugitive diamantaire Nirav Modi as the international agency is satisfied with the documents provided by the CBI which is probing the $2 billion scam, sources said. The records the CBI provided to the Interpol included the non-bailable warrants issued by a Mumbai special court and the details of the charge sheets filed in the case etc. The documents were found in order and have satisfied the Lyon-based international police cooperation agency which is “processing” the CBI’s request, they said. The sources said the process was at an advanced stage and an RCN could be issued on Friday or early next week, unless some last-minute explanation was sought, the chances of which were negligible, they said.