Today in New Delhi, India
Jul 17, 2019-Wednesday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Bombay High Court rejects Vijay Mallya’s plea against orders under FEO act

Mallya has contended that the act provides for drastic measures like vesting of all assets of the fugitive offender into the Union of India on a mere declaration of the person as a fugitive offender by a special Prevention of Money Laundering Act (PMLA) court.

mumbai Updated: Jul 12, 2019 04:27 IST
HT Correspondent
HT Correspondent
Hindustan Times, Mumbai
Bombay High Court,Vijay Mallya,Vijay Mallya plea
Mallya, who is currently in the United Kingdom, has been charged by the Enforcement Directorate (ED) of defaulting on bank loans of Rs 9,000 crore. (AP file photo)

The Bombay high court (HC) on Thursday rejected a plea filed by liquor baron Vijay Mallya, seeking a declaration that all orders, including those for the confiscation of his properties, under provisions of the Fugitive Economic Offenders (FEO) Act, 2018, will be subject to the outcome of another pending petition before the high court. The second petition challenges the constitutional validity of the act.

On January 5, a special court declared Mallya a fugitive economic offender. The court then started proceedings for confiscating his properties. Mallya, who is currently in the United Kingdom, has been charged by the Enforcement Directorate (ED) of defaulting on bank loans of Rs 9,000 crore.

Mallya has contended that the act provides for drastic measures like vesting of all assets of the fugitive offender into the Union of India on a mere declaration of the person as a fugitive offender by a special Prevention of Money Laundering Act (PMLA) court.

The provision for confiscation of all assets of the person, irrespective of whether those are connected with the alleged offence or not, was nothing short of an “economic death penalty,” his lawyer, senior advocate Amit Desai had argued earlier. The bench of justice Akil Kureshi and justice Shahrukh Kathawalla, however, found no reason to entertain the plea.

Meanwhile, the ED has opposed the pending petition, contending that the FEO is aimed at securing the presence of economic offenders booked in cases involving amounts more than Rs 100 crore and the proceedings are dropped the moment the offender returns to the country, and presents himself before the special court.

Another division bench of the HC had earlier rejected Mallya’s plea for staying the confiscation of his properties.

First Published: Jul 12, 2019 04:27 IST

tags