A special PMLA court in Mumbai on Saturday summoned liquor baron Vijay Mallya to appear before it on August 27 on the Enforcement Directorate’s plea seeking action against him under the fugitive economic offenders ordinance in the over Rs 9,000 crore bank fraud case.
Special judge M S Azmi, dealing with the Prevention of Money Laundering Act (PMLA) cases, issued the notice to Mallya after taking cognizance of the second ED charge sheet filed against him recently and a subsequent application by it on June 22 seeking a fugitive economic offenders tag.
This is the first time that action has been initiated under the ordinance recently promulgated by the Modi government to deal with fugitive bank loan defaulters. The agency has also sought immediate confiscation of assets worth around Rs 12,500 crore of Mallya and other fugitive economic offenders, they said.
If Mallya does not appear before the court, he risks being declared a fugitive economic offender, besides properties linked to him being confiscated.
The court had earlier issued non-bailable warrants against the beleaguered businessman in the two cases filed by the ED.
Mallya, his now defunct venture Kingfisher Airlines Limited and others availed loans from various banks during the tenure of the UPA-I government and the outstanding amount, including interest, against him is Rs 9,990.07 crore at present, the officials said.
The ED has furnished evidences in its two charge sheets, filed under the Prevention of Money Laundering Act (PMLA) in the past, to make a case for seeking a fugitive offender tag for Mallya from the court.
Mallya is contesting the money laundering charges in London after India initiated extradition proceedings against the liquor baron to bring him back to the country. Both the ED and the Central Bureau of Investigation (CBI) have filed cases for alleged loan default against him.
(With inputs from PTI)