PMLA court declares Mallya Fugitive

A special PMLA (Prevention of Money Laundering Act) court today declared  Vijay Mallya a fugitive economic offender. This declaration clears path for the ED and CBI to confiscate his properties for auction and recovery of the money he defaulted.

Vijay Mallya owes INR₹ 9,000 crore to 17 Indian banks, he absconded from India in 2016.

The liquor baron’s Kingfisher Airlines Limited availed loans from various banks before the company tanked. The businessman is in London contesting an extradition case against CBI and ED.

The Government of India under the leadership of Prime Minister Modi brought in new laws to prevent such instances of economic offenders fleeing jurisdiction of Indian courts.

The law provisions special courts like the PMLA to declare a person as a fugitive economic offender and order immediate confiscation of assets.

The cases of frauds, cheque dishonour or loan default of over Rs 100 crore would come under the ambit of the PMLA.