The Enforcement Directorate (ED) is likely to move a special court on Friday to get beleaguered liquor baron Vijay Mallya declared a “Fugitive Economic Offender”. Once declared so, Mallya could lose any claim over his properties and assets in India and abroad as the agency could confiscate and sell them off. The ED action, sources said, is being carried out under the Fugitive Economic Offenders Ordinance issued by the government and assented by the President recently. ED has already filed a prosecution complaint against the Kingfisher Airlines owner and also attached his properties worth Rs 9,890 crore. All of this property and more, sources said, could be confiscated and sold off to recover public money allegedly laundered by Mallya unless he returns to the country while the proceedings to get him declared a fugitive are still on. Sources said, once Mallya is declared a fugitive he would also not be able to contest the confiscation and liquidation of his assets in any court of law. “This is where the new law is very very stringent against those who run away abroad to escape the clutches of the law. Under the new law we do not need to wait for his conviction to liquidate his assets. If he is not ready to face the law here, his assets can be sold off without waiting for his conviction in the case,” an ED official explained. He added that Mallya still has assets which have not been attached. These assets too could now be liquidated. “Under the money laundering act, assets worth only the proceeds of crime can be attached. Under the fugitive law, all assets can be confiscated. This could actually bring the government more money than Mallya has defaulted to the banks,” the official said. Mallya is facing cases from CBI and ED for defaulting on over Rs 9,000 crore loans taken from a consortium of banks for his airline the Kingfisher Airline. He is also fighting a case of extradition in a court in the UK against the Indian government. The ordinance defines a Fugitive Economic Offender as a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution. Such economic offenders are to be tried under Prevention of Money Laundering Act.
