Stage Set For Confiscating Mallya’s Assets After He Becomes First Tycoon Declared Fugitive Economic Offender Under NDA Govt’s FEO Act 

Absconding liquor baron Vijay Mallya on Saturday (Jan 5) earned the dubious distinction of becoming India’s first business tycoon to be declared a fugitive economic offender under the provisions of NDA Government’s Fugitive Economic Offenders Act(FEO Act) that came in to effect last year (Aug. 2018).

Under the tough provisions of the FEO Act, a person can be declared a fugitive economic offender if a warrant has been issued against him for an offence involving an amount of Rs 100 crore or more and he/she has left the country and refuses to return.The courts can order immediate confiscation of the offenders ‘s properties and other assets.

The Enforcement Directorate had moved the special court for this purpose requesting the court that Mallya, currently in the U.K., be declared a fugitive and his properties be confiscated and brought under the control of the Union government as provided under the act.

Special Prevention of Money Laundering (PMLA) judge MS Azmi declared Mallya an FEO under Section 12 of the Act after hearing extensive arguments from the lawyer of Mallya and the ED counsel.

"The application of the ED is partly allowed. Vijay Mallya is declared as Fugitive Economic Offender under section 12 (i) of the FEO Act," said judge MS Azmi in the order.

Last month (Dec 18), the Westminster Magistrates Court in London ordered in favour of Indian authorities’ plea to extradite Mallya to India. However, the ruling has been challenged in the High Court in the UK.e from Feb. 5.

The ED is also trying to seek the similar ruling against Nirav Modi and his uncle Mehul Choksi- prime accused in over $2 billion Punjab National Bank (PNB) fraud case.

The same special court is also hearing the directorate's plea to declare diamond merchants Nirav Modi and Mehul Choksi fugitive economic offenders in the Punjab National Bank fraud case.