India's Enforcement Directorate has swooped in to confiscate properties of businessmen Vijay Mallya, Nirav Modi, and Mehul Choksi, following powers provided in the just-promulgated Fugitive Economic Offenders Ordinance. Sources said the ED decided to approach the Prevention of Money Laundering (PMLA) court to seek that the three be declared “fugitives” who had defied non-bailable arrest warrants to stay put abroad. The decision was made following deliberations over 48 hours. The ED will argue that they are liable to be covered under the stringent provisions of the new law against economic offenders.
After a green signal from the PMLA court, he will be dispossessed of properties and assets which will then be vested with the central government. Under the new law, the government will be free to dispose of the assets of “fugitives” like Mallya. His assets, estimated to be worth £900 million, have been provisionally attached under PMLA. While he is still the legal owner of the assets, he cannot sell them. Mallya will be among the first targets of the fresh law because in his case, two essential conditions for confiscation of property, arrest warrant and filing of chargesheet in court, have been met.
No chargesheet has been filed against diamond merchants Nirav Modi and Mehul Choksi, but the reprieve for them could be short-lived with the ED just days away from completing the process against them. The duo runs a real risk of being disentitled of properties and assets worth over £300 million. The ED has identified assets worth over £1.20 billion belonging to a few economic offenders who have fled the country and which can be confiscated. Held properties will be owned by the central government, which will appoint an administrator to dispose them of. No case related to these confiscations will be entertained by any court or tribunal anywhere as per the ordinance once the PMLA court declares an accused “fugitive economic offender” and orders confiscation of assets equivalent to the proceeds of crime.
