Mallya first tycoon to be named fugitive economic offender

Mumbai: Vijay Mallya became the first tycoon to be charged under a new anti-fraud law, with a court in Mumbai on Saturday naming him as an offender under the Fugitive Economic Offenders Act, 2018. The anti-corruption court was hearing an application by the Enforcement Directorate, seeking a direction to declare Mallya a fugitive economic offender.

Over the last few months, several high-profile businessmen including Nirav Modi and Mehul Choksi have been under the government's radar for alleged financial crimes running into thousands of crores. The new law to catch people who flee abroad after committing financial crimes was signed by the President in August last year. It was aimed at stopping a growing number of high-profile economic offenders feeling the country to avoid legal action.

According to the new law, a fugitive economic offender is a person against whom an arrest warrant has been issued for his or her involvement in economic offences involving at least 100 crore or more and has left India to avoid prosecution. A court in the UK last month said Mallya can be extradited to India to face fraud investigations. He is wanted in India for defaulting on Rs 9,000 crore in loans to his failed Kingfisher Airlines.