The Supreme Court on Monday agreed to hear on August 2 a petition by absconding businessman Vijay Mallya against a move to declare him a fugitive under the Fugitive Economic Offenders (FEO) Act of 2018 and confiscate his assets worth crores of rupees.
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In December last, the court issued notice to the Enforcement Directorate (ED)on Mr. Mallya's plea while refusing to stay proceedings under the 2018 Act to attach a 'fugitive' tag to his name.
Mr. Mallya, represented by senior advocate Fali Nariman, has argued that the seizure of his assets on being declared a fugitive economic offender under the FEO Act would hamper his efforts of clearing his dues.
Mr. Mallya argued that confiscation of his property foreclosed his ability to pay his creditors, probably under a revised offer.
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The FEO Act is meant to prevent loan defaulters from fleeing the country to evade legal action. It came into existence in April last. Mr. Mallya left the country in March 2016.
A fugitive economic offender is a person who has a warrant of arrest under a scheduled offence but has fled the country to evade prosecution.
On November 22, the Bombay High Court dismissed Mr. Mallya's appeal for stay on the ED proceedings
He had sought a stay on the ground that the Appellate Tribunal for Foreign Exchange (ATFE) had ordered a status quo on the attachments in Prevention of Money Laundering Act case filed by the State Bank of India. A Special Court earlier dismissed a stay of the ED proceedings despite Mr. Mallya's stand in September that he was not a fugitive economic offender and not involved in money laundering.