Mallya, who is currently in London, owes more than Rs 9000 crore to several Indian banks.

New law to seize assets of persons absconding from India FM Jaitley hints at Vijay MallyaPTI photos
news Budget 2017 Wednesday, February 01, 2017 - 14:14

During his budget speech, Finance Minister Arun Jaitley said the Centre is considering drafting a law to confiscate assets of persons who flee India to escape the law. The announcement was in reference to absconding business tycoon Vijay Mallya.

Although Jaitley did not name Mallya, he said, "There have been instances of big time offenders fleeing the country to escape law. The government is considering legislative changes, and new law to confiscate assets of such persons."

Mallya is currently believed to be in London, as several Indian banks look to recover more than Rs 9000 crore that his now defunct Kingfisher Airlines owes to them. 

He left the country a day after thirteen banks, led by State Bank of India moved the Debt Recovery Tribunal (DRT) in March 2016. The CBI has also initiated extradition request to bring Mallya back to India from the United Kingdom.

In January, the Debt Recovery Tribunal (DRT) ordered attachment and recovery of Mallya's properties for defaulting on bank loans.  

The Bengaluru bench of the Tribunal said properties of Mallya and Kingfisher worth Rs 6,203 crore plus interest at 11.5% from July 26, 2013 can be recovered by a consortium of banks led by State Bank of India (SBI).

India's market regulator, the Securities and Exchange Board of India (Sebi) has also barred Mallya and six officials of United Spirits Ltd (USL) from trading in the securities market.

Another example of a powerful person who left India to flee the law is Lalit Modi, the former chairman of the Indian Premiere League. 

After the 2010 IPL ended, Modi was accused of indiscipline and financial irregularities which led to his suspension from the BCCI. BCCI also found him guilty in 2013. However, before the Enforcement Directorate could launch a query, Modi fled to London. 

His passport was revoked on the ED's complaint and a blue corner notice was also issued against him by Interpol for breaching rules related to the Foreign Exchange Management Act (FEMA) during his tenure in the IPL. However, his passport was reinstated in 2014 as per a Delhi High Court ruling.

Modi has not appeared for questioning in India and continues to remain in London, citing threat to his life back home - a claim which has been denied by the Mumbai police.

(With IANS inputs)

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