India made its first official move today 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 publisize Fugitive Economic Offenders Ordinance that empowers it to confiscate all assets of a loan defaulter.
The application accessed by PTI seeks to immediately confiscate about Rs. 12,500 crore assets of Vijay Mallya and his companies, both movable and immovable. The ED has found 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 Vijay Mallya from the court.
Vijay Mallya is contesting these money laundering charges in London as part of India’s efforts to deport 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.