- Probe agencies seek to confiscate about Rs 12,500 crore
- Enforcement Directorate has given evidences in two charge-sheets
- Vijay Mallya contesting money laundering charges in London
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 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 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 Vijay Mallya from the court.
Vijay 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.
"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. Cases of frauds, cheque dishonour or loan default of over Rs 100 crore would come under the ambit of this ordinance. The ordinance offers necessary constitutional safeguards in terms of providing hearing to the person through counsel, allowing him time to file a reply, serving notice of summons to him, whether in India or abroad and appeal before the high court.
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