India seeks fugitive tag for Mallya; ED moves court to confiscate Rs 12,500-cr assets

India today made its first move to clampdown on big bank loan defaulters under a new law as the Enforcement Directorate (ED) moved court against liquor baron Vijay Mallya seeking to declare him a 'fugitive offender' and to confiscate his assets worth Rs 12,500 crore.

Officials said the central probe agency filed an application before a special court in Mumbai, underthe recently promulgated Fugitive Economic Offenders Ordinance, that empowers it to confiscate "all linked assets" of an absconding loan defaulter.

The application accessed by PTI said the ED seeks to "confiscate all the properties of Vijay Mallya including those properties indirectly controlled by him."
The application said the "estimated value of properties proposed for confiscation is to the tune of Rs 12,500 crore approximately, which includes immovable properties as well as movable properties in form of shares."
The government brought the fugitive ordinance as "there have been instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings."
The agency charged in its application that Mallya "had no intention to repay the loans from the start and though he and Ms UBHL (United Breweries Holdings Limited) had substantial assets that were sufficient to repay the loans, they intentionally withheld the details from the banks."