Vijay Mallya declared as first ‘fugitive economic offender’ by Special Court

Fugitive economic offender Vijay Mallya, accused of defaulting on loan repayments and money laundering, had left India in March 2016.

Recently, the defunct Kingfisher Airlines chief offered to pay back 100 per cent of the principal amount he owes to Indian banks. (Photo by Ben STANSALL / AFP/ File)

NEW DELHI: Special PMLA court on Saturday declared Vijay Mallya a fugitive economic offender (FEO) on a plea of the Enforcement Directorate. He has become the first businessman to be declared EFO under the provisions of the new Fugitive Economic Offenders Act which came into existence in August last year. Now, the government can confiscate his properties. Recently, the defunct Kingfisher Airlines chief offered to pay back 100 per cent of the principal amount he owes to Indian banks. His offer came days before extradition order was issued by the UK court against him. Mallya fled to the UK on March 2, 2016, as a consortium of 13 banks, led by the State Bank of India (SBI) closed in on him, with Mallya owing Rs 9,000 crore. Earlier, the ED had requested the Prevention of Money Laundering Act (PMLA) court that Mallya, who is currently in the UK, be declared a fugitive and his properties be confiscated and brought under the control of the Union government as per the provisions of the new FEO Act. Special 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. Mallya, accused of defaulting on loan repayments and money laundering, had left India in March 2016.