Why this ED move could hurt lenders' efforts to recover dues from Mallya

The Fugitive Economic Offenders Bill could be a thorn in their path

A consortium of Indian banks looking to liquidate Vijay Mallya's assets in Britain may face more hurdles in recovering their money. Earlier, a UK court had allowed them to search and seize properties of the fugitive liquor baron.  

But, the Enforcement Directorate may play spoilsport in their efforts, according to an Economic Times report. The report says that the agency may use the latest fugitive law to stake its claims on the businessman's money.

The May 27 Ordinance gives certain law enforcing agencies powers to attach and confiscate the proceeds of crime and properties of economic offenders like bank defaulters