Big blow to Vijay Mallya and Nirav Modi! Enforcement Directorate (ED) is all set to “confiscate” assets worth over Rs 15,000 crore

The Fugitive Economic Offenders Bill recently passed by the Government of India gave the officials more power in hand to target all the corrupts who ran taking money of the country. And the officials without wasting any time has made proper use of the law to curb them.

According to Financial Express Report It seems that now there is no escape route for people like Vijay Mallya, Nirav Modi as The Enforcement Directorate (ED) is set to “confiscate” assets worth over Rs 15,000 crore as part of its first action against absconders such as liquor baron Vijay Mallya and diamantaire  Nirav Modi under the recently promulgated Fugitive Economic Offenders Ordinance.

Officials said the agency has begun the work to bring together the existing cases of high-value fugitives and bank loan defaulters and it will soon approach various special anti-money laundering courts in the country to get orders issued against them under the new ordinance. They said the money laundering cases against Vijay Mallya, who is now based in London, Nirav Modi and his uncle Mehul Choksi, Winsome Diamond company promoter Jatin Mehta and others are expected to be picked up first for action. The ED is the empowered agency to enforce the new ordinance.

Under the new ordinance, the officials said, all the assets of such an absconder, both in India and abroad, which have or have not been attached by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA), will be confiscated immediately. The case of Modi and Choksi will be processed under the new ordinance, once the CBI and the ED file their respective charge sheets against them, they said. While Rs 9,890 crore worth of assets have been attached by the ED in the Mallya case, properties worth Rs 7,664 have been attached in the Nirav Modi-Mehul Choksi case. In the first go, they said, it is estimated that over Rs 15,000 crore worth of assets could be confiscated by the ED under the provisions of the ordinance, aimed at those who flee the country after defaulting on multi-crore bank loans and similar instances of fraud. The other such cases will be taken up gradually, they added.

Earlier Under the PMLA, the ED could only confiscate the assets once the trial in a case finishes which usually takes a long time, they said. President Ram Nath Kovind, last Sunday, had given assent to the promulgation of the Fugitive Economic Offenders Ordinance, 2018, giving authorities powers to attach and confiscate the proceeds of crime and properties of economic offenders. The ordinance is aimed at deterring economic offenders from evading the process of law by remaining outside the jurisdiction of Indian courts. The government brought the ordinance as “there have been instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings,” the government said. The rationale behind the law, the government said, was the absence of such offenders from Indian courts which hampers the investigation and wastes court time and undermines the rule of law. “The existing civil and criminal provisions in law are not entirely adequate to deal with the severity of the problem,” it said.

Promulgation of the Fugitive Economic Offenders Ordinance, 2018, has given authorities powers to attach and confiscate the proceeds of crime and properties of economic offenders. The new bill seems to be very powerful. Under the new Bill, properties within or outside India may be subject to seizure or confiscation by the Central Bureau of Investigation (CBI) or the Enforcement Directorate (ED). This Bill has shaken Nirav Modi and Vijay Mallya because, with this ordinance, corporate fugitives would be forced to return to India to face trial for scheduled offences. This would also help the banks and other financial institutions to achieve higher recovery from financial defaults committed by such offenders, improving the financial health of such institutions.

Now those days of Corruption are over when under the Congress party, the business tycoons were given loans without any valid paper works. That’s why the fraudsters cum businessmen like Vijay Mallya and Nirav Modi looted India and fled from the nation easily. But, this won’t be repeated henceforth and in my New India, no such corruption will be tolerated.