New Law On Confiscation Of Absconder's Property Soon: Jaitley

“In the recent past, there have been instances of big time offenders, including economic offenders, fleeing the country to escape the reach of law. We have to ensure that the law is allowed to take its own course” Finance Minister Arun Jaitley.

Delivering the 2017-18 budget, Finance Minister Arun Jaitley today said in order to prevent loan defaulters from fleeing the country, the government plans to bring a law to confiscate the assets of such persons till they submit to judiciary.

In an indirect reference to Vijay Mallya like incidents, he said in the recent past, there have been instances of big time offenders, including economic offenders, fleeing the country to escape the reach of law.

“We have to ensure that the law is allowed to take its own course”, he said in Parliament while presenting the Budget proposals for financial year 2017-18.

Jaitley said legislative changes or even a new law would be brought to deal with such absconders.

Government is therefore considering introduction of legislative changes, or even a new aw, to confiscate the assets of such persons located within the country, till they submit to the jurisdiction of the appropriate legal forum, he said.

Needless to say that all necessary constitutional safeguards will be followed in such cases, he added.

Business tycoon Mallya, whose defunct Kingfisher Airlines owes more than Rs 9,000 crore to various banks, had left India on March 2.

The total attachment made by the agency in this case has now shot up to Rs 8,041 crore. This is one of the largest attachment of assets made by ED in a PMLA case till now.

The agency had registered a money laundering case against him and others based on an FIR registered last year by the CBI.

The Enforcement Directorate had on September last year seized properties, assets and shares, belonging to business tycoon Vijay Mallya, worth Rs. 6,630 crore. The action against Mr Mallya, 60, comes after the CBI lodged a fresh case of cheating against him.

A group of banks, including the State Bank of India, had complained against Mallya, accusing him of cheating them out of Rs. 5,000 crore in loans. The banks had extended credit facilities to Mallya's Kingfisher Airlines in 2010. The banks claim that Mallya and his company deliberately didn't repay the dues. The matter is pending in the Supreme Court.

The total value of properties and assets seized by the Enforcement Directorate now stands at Rs. 8,044 cores. The agency has said that the seized assets were 'proceeds generated out of criminal activity' by Mallya.

This article has been made possible because of financial support from Independent and Public-Spirited Media Foundation.