The ED submitted that efforts were made to locate Vijay Mallya so that he could be made part of the investigation.
THE ENFORCEMENT Directorate Friday filed an application before a special court in Mumbai seeking to declare Vijay Mallya, a ‘fugitive economic offender’, under the recently promulgated Fugitive Economic Offenders Ordinance, 2018. Under its provisions, the ED has sought an order for confiscating all Mallya’s properties including those indirectly controlled by him, even before the trial begins against him.
This is the first application in the country under the Ordinance so far. The ED claims that that the estimated value of the properties, which will be available for confiscation by the central government is Rs 12,500 crore. This includes his immovable and movable properties in the form of shares.
Last week, a prosecution complaint (chargesheet) was filed by the ED under the Prevention of Money Laundering Act against Mallya, his company, Kingfisher Airlines and United Breweries. After the court took cognizance of the complaint, a non-bailable warrant was issued against Mallya.
The ED submitted that efforts were made to locate Mallya so that he could be made part of the investigation. The agency claimed that he had ‘deliberately and intentionally’ avoided to appear before it and despite the revocation of his passport and the non-bailable warrant, had not appeared forward for the investigation.
Mallya has been facing investigation for alleged siphoning and diversion of funds granted as loans to Kingfisher Airlines. The ED claims that in the guise of lease rental payments for aircraft and misrepresentation before banks for payments towards ground handling of airlines, loan money was used for his personal benefits including diversion of money for his Indian Premier League cricket team. The ED has told the court that the extradition hearings against Mallya are being heard before a London court. The court is still to hear and decide on the application.
The Fugitive Economic Offenders Ordinance, which was cleared by the Cabinet in April, empowers authorities to attach and confiscate properties and assets of economic offenders like loan defaulters who flee the country.