Mallya to become first test case for new Fugitive Economic Offenders law
Absconding former liquor baron, Vijay Mallya will become the first test case for the new Fugitive Economic Offenders Act. The Enforcement Directorate will move the designated court seeking to declare Mallya as a fugitive.
If the court declares him a fugitive, then it would pave the way to attach assets to the tune of over Rs 12,000 crore, the amount Mallya owns the banks. The new law empowers the agency to seize Mallya's assets without the trial commencing.
The law states that the procedure cannot be challenged in any court of law. However if Mallya wants to challenge the proceedings, then he would have to come down to India first and then seek legal recourse.
As per the law, if a person is declared a fugitive, then he or she is given six weeks time to present themselves before the court. If the person fails to do so, then the agency can go ahead with the seizures.
The Fugitive Economic Offenders Ordinance was cleared in April, by the Union Cabinet. The law specifically deals with economic offenders who have fled the country. The law gives the agencies the upper hand to seize assets without legal hurdles in a bid to recover the money the fugitives owes.