Why in News?
Indian businessman Vijay Mallya has told the Prevention of Money Laundering Act (PMLA) court that he was not a fugitive economic offender” under the Act and had not involved in the scheduled offence of money laundering.
Who is a fugitive economic offender?
What is the latest development with Vijay Mallya and Nirav Modi?
A special Prevention of Money Laundering Act court on June 30 took cognisance of an application by the Enforcement Directorate (ED) under the Ordinance and issued summons to Vijay Mallya and others before it on August 27, 2018. The ED on July 11 also moved a special court in Mumbai seeking “fugitive economic offender” status for Nirav Modi and his uncle Mehul Choksi.
What happens if a person is designated a fugitive economic offender?
If the special court is satisfied that an individual is a fugitive economic offender, it can direct the Central government to confiscate the proceeds of the crime in India or abroad, whether or not such property is owned by the fugitive economic offender, and any other property or benami property in India or abroad that is owned by the fugitive economic offender.
While the confiscation of property within India should not be a problem for the Centre, confiscating properties abroad will require the cooperation of the respective country. The fugitive economic offender will also be disqualified from accessing the Indian judicial system for any civil cases.