The Enforcement Directorate (ED) is all set to move a special court this week to get beleaguered liquor baron Vijay Mallya declared a “Fugitive Economic Offender”. If declared, the businessman could lose any claim over his properties and assets in India and abroad as the ED could confiscate and sell them. Sources said the action is being taken under the Fugitive Economic Offenders Ordinance issued by the government and assented by the President recently.
ED has already filed a prosecution complaint against the Kingfisher Airlines owner and also attached his properties worth £989 million. Sources said all of this property and more, could be confiscated and sold off to recover public money allegedly laundered by Mallya unless he returns to the country while the proceedings to get him declares a fugitive are still on. They also said that once Mallya is declared a fugitive, he would also not be able to contest the confiscation and liquidation of his assets in any court of law.
An ED official said, “This is where the new law is very very stringent against those who run away abroad to escape the clutches of the law. Under the new law, we do not need to wait for his conviction to liquidate his assets. If he is not ready to face the law here, his assets can be sold off without waiting for his conviction in the case.” He added that Mallya still has assets which have not been attached. These assets too could now be liquidated. “Under the money laundering act, assets worth only the proceeds of crime can be attached. Under the fugitive law, all assets can be confiscated. This could actually bring the government more money than Mallya has defaulted to the banks.”
