Vijay Mallya is the first tycoon to be declared a ‘fugitive economic offender’.
Vijay Mallya is the first tycoon to be declared a ‘fugitive economic offender’.(Photo: Kanishk Jain/The Quint)
  • 1. What Does the Fugitive Economic Offenders Act, 2018 Aim...
  • 2. How Did the Act Take Shape?
  • 3. Important Features of the Act
  • 4. Why is It Considered Problematic?
All You Need to Know About The Fugitive Economic Offenders Act

On 5 January, a special anti-corruption court declared debt-ridden liquor baron Vijay Mallya a ‘fugitive economic offender’ under the provisions of a new law, which sought to bring to book big-ticket tycoons and businessmen who have left the country to escape indictment.

Seen as the first major win for the Fugitive Economic Offenders (FEO) Act – that was passed last August – Mallya will now be subject to the provisions of the law, which means that his property and assets will be confiscated and brought under the control of the Union government.

Mallya had first left the country in 2016 after he was accused of defaulting on loan payments to the tune of thousands of crores. At present, he is wanted for having unpaid dues amounting to Rs 9,000 crore in India.

  • 1. What Does the Fugitive Economic Offenders Act, 2018 Aim to Do?

    Coming close on the heels of the Nirav Modi-Punjab National Bank multi-crore bank fraud in 2018, the Act, at the time, was viewed by the government as a strong measure to come down on economic offenders who used their wealth and connections to avoid prosecution by fleeing the country.

    According to PRS, a legislative research organisation, the law applies to somebody:

    • against whom there is an arrest warrant issued for offences where the value exceeds Rs 100 crore
    • who has exited the country and refuses to return to face criminal proceedings

    In order to declare a person a FEO, the agency will have to file an application in a special court and attach the details of all the property to be confiscated.

    Also Read : How Many Mallyas Does India Have? Top Economic Offenders Revealed

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