In January 2019, under the fugitive economic offender Act 2018, the PMLA court declared Mallya a fugitive economic offender.
Mumbai| In a big development, the PMLA court has given a Green Signal to recover the debts of fugitive liquor Baron Vijay Mallya by selling his seized property. However, the Special Court of the Prevention of Money Laundering Act (PMLA) has stayed this decision until January 18 to facilitate the parties affected by this order, a passage to appeal in the Bombay High Court.
Last month, Indian Banks, led by the State Bank of India, appealed to a London court to seize Vijay Mallya’s property and declare him insolvent. Mallya has fled to the UK with more than nine thousand crores of these banks. Mallya borrowed the money from banks for Kingfisher Airlines, which has now been closed. Mallya fled India in March 2016 and has been living in the UK ever since.
Also Read: Cabinet approves Fugitive Economic Offenders Ordinance 2018: Provision for confiscating properties of escapees
The Enforcement Directorate (ED) told the PMLA court in February last year that it had no objection to handing over the seized property to a group of banks. However, the ED had asked the banks to get a guarantee.
In January 2019, under the fugitive economic offender Act 2018, the PMLA court declared Mallya a fugitive economic offender. The Act allows the seizure of property of economic criminals who are outside the jurisdiction of the Indian courts and avoid prosecution. The government and Indian investigating agencies are constantly trying to bring Mallya back to India.
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