Vijay Mallya is declared as ‘fugitive economic offender’ by court

The Mumbai court has declared Vijay Mallya as ‘fugitive economic offender’ and is the first person to be hit by a new law that empowers the government to seize properties of individuals who flee the country to escape prosecution.

Mallya was facing official procedures in India in connection with taking a huge amount of loan for his Kingfisher Airlines from a consortium of 12 banks led by the State Bank of India and failed to settle it. The Mumbai court has dismissed Malya’s plea. He then approached the Supreme Court but the court was not in favour of Mallya.

He is also facing extradition from the United Kingdom to India to face charges of financial irregularities running into thousands of crores. Besides the extradition case, Mallya is also facing recovery action against his assets in the UK brought by 13 Indian banks and another mortgage recovery action by the UBS Bank against his house in central London. Mallya’s properties will be seized by the government.