Fugitive Offenders Act won’t help banks: Mallya

Fugitive Offenders Act won’t help banks: Mallya

1. Fugitive businessman Vijay Mallya has told the Bombay High Court that confiscation of his properties under the newly-enacted Fugitive Economic Offenders Act (FEOA) was draconian and it will not help the creditors.
2. Earlier, he had approached the high court challenging a January 5 order of a special court under the Prevention of Money Laundering Act (PMLA) declaring him a fugitive economic offender under the FEO Act.
3. The Enforcement Directorate has opposed the petition. It argued that the objective of the Act was to ensure the return of a person who is evading arrest in India. ED said that if the person returns to India, the provisions of this Act and the process initiated under it shall become null and void.
4. The Fugitive Economic Offenders Act, 2018 is an Act of the Parliament of India that seeks to confiscate properties and assets of economic offenders that evade prosecution by remaining outside the jurisdiction of Indian courts. Economic offences with a value of more than Rs. 100 crores, which are listed in the schedule of the Fugitive Economic Offenders Act, come under the purview of this law.
5. As per the Act, a Special Court under the Prevention of Money Laundering Act, 2002 has to declare a person as a Fugitive Economic Offender. Upon declaration, properties of the FEO may be confiscated by the central government. Further, the FEO or any company associated with him is barred from filing a civil claim.