The Enforcement Directorate (ED) today moved a Mumbai court against liquor baron Vijay Mallya to declare him a 'fugitive offender' under the recently promulgated Fugitive Economic Offenders Ordinance that empowers it to confiscate the assets of an absconding loan defaulter.
A Fugitive Economic Offender is a person against whom an arrest warrant has been issued but has fled the country to avoid prosecution for fraud.
Acording to a PTI report, the ED is seeking to confiscate Mallya's assets worth Rs12,500 crore.
In the past the ED has filed evidence in two charge sheets, under the Prevention of Money Laundering Act (PMLA), under which it can confiscate assets only after a trial.
The Fugitive Economic Offenders Bill, 2018, was promulgated in April.
The government brought the ordinance in view of instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the or during criminal proceedings.
The ordinance allows special courts under the Prevention of Money Laundering Act, 2002, to declare a person as a fugitive economic offender and order immediate confiscation of assets.
Cases of frauds, cheque dishonour or loan default of over Rs 100 crore come under this ordinance.