Vijay Mallya To Be First Person To Be Booked Under New Law by ED

Liquor baron Vijay Mallya will become the first person to be booked under the new regulation – The Fugitive Economic offenders Ordinance

The Enforcement Directorate(ED) has filed fresh charges against businessman Vijay Mallya in the IDBI Bank-Kingfisher Airlines(KFA) bank loan fraud case under new law.

Following this the Prevention of Money Laundering Act (PMLA) court will begin the process to declare Mallya a fugitive.

Going by the empowerment the new law renders, Mallya’s assets attached in relation to the Kingfisher Airlines bank loan fraud case will be auctioned even with him absconding.

Officials familiar with the case said all properties belonging to Mallya in India and abroad will be attached and auctioned under the new law.

Currently, assets worth more than Rs. 6,000 have been attached by ED authorities.

The Liabilities
ED is set to file fresh charges against Mallya and his companies for money laundering and alleged cheating of a consortium of nationalised banks to the tune of Rs. 6,027 crore.

The Central Bureau of Investigations(CBI) on the other hand is seeking court’s permission to ‘confiscate’ more than Rs. 9,000 crore worth assets under the Fugitive Economic Offenders Ordinance.

On June 16, the Westminster Magistrates’ court in UK had ordered Mallya to pay a minimum of 2,00,000 pounds towards litigation costs incurred by 13 Indian banks to recover alleged dues.

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