New Delhi, Nov 22 (Zee News): The Bombay High Court on Thursday dismissed appeal filed by absconding liquor baron Vijay Mallya seeking stay on ED's request before trial court to initiate proceedings against him under the Fugitive Economic Act.
The Enforcement Directorate wants Mallya to be declared as a fugitive economic offender and his properties to be confiscated under the act.
Mallya, his now defunct venture Kingfisher Airlines Ltd, and others availed loans from various banks and the outstanding amount, including interest, against him was around Rs 9,990.07 crore, the officials had said while filing the plea under the new law. Mallya is currently contesting his extradition case in London filed by the Indian government on behalf of the CBI and ED.
Mallya, in the past, had said that he had become the “poster boy” of bank default and a lightning rod for public anger. “I have been accused by politicians and the media alike of having stolen and run away with Rs 9,000 crore that was loaned to Kingfisher Airlines (KFA). Some of the lending banks have also labelled me a wilful defaulter.”
The ED 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. He is currently contesting the money laundering charges in London after India initiated extradition proceedings to bring him back to the country. Both the ED and the Central Bureau of Investigation (CBI) have filed cases for alleged loan default against him.
Who is a fugitive economic offender and what does it mean?
The law has 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 to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution. Cases of frauds, cheque dishonour or loan default of over Rs 100 crore would come under the ambit of the Ordinance.