ED seeks ‘fugitive economic offender’ tag for Mallya | India News
Mallya, who has defaulted on loans of over Rs 9,000 crore he took from PSBs by offering hypothetical property as collateral, would be the first Indian businessman to be declared fugitive financial offender underneath the brand new regulation if the particular PMLA (Prevention of Cash Laundering Act) court docket accepts ED’s software.
“Fugitive financial offender means any particular person in opposition to whom a warrant for arrest in relation to a scheduled offence has been issued by any court docket in India, who has left India in order to keep away from legal prosecution; or being overseas, refuses to return to India to face legal prosecution,” the ordinance states.
Beneath the rule, properties confiscated by the company may be disposed of and cash deposited in authorities accounts even whereas the trial is underneath manner – a provision which makes it much more stringent than PMLA which offers for attachment of the property of the accused who stays the proprietor of the property.
In Mallya’s case, the ED has connected property value over Rs eight,000 crore (market worth) and filed two chargesheets in addition to acquiring non-bailable arrest warrants in opposition to him. An extradition request in opposition to him is at present pending in UK courts.
Apart from Mallya, diamantaires Nirav Modi and Mehul Choksi and some different fugitives, together with ex-deputy collector of Maharashtra Housing Space Growth Authority, Nitish Thakur, and promoters of Communicate Asia are more likely to face comparable motion.
The confiscated properties will probably be owned by the Centre, which can appoint an administrator to eliminate the property. No case associated to those confiscations will probably be entertained by any court docket or tribunal anyplace, as per the ordinance, as soon as the PMLA court docket declares an accused a fugitive financial offender and orders confiscation of his property equal to the proceeds of crime.