The Bombay High Court on Thursday refused relief to Vijay Mallya, a declared fugitive economic offender under the Fugitive Economic Offenders Act, 2018 (FEO). Mallya had sought a stay on confiscation of properties owned by him until his petition challenging the FEO Act is decided.
Division bench ofJustice Akhil Kureshi and Justice SJ Kathawalla dismissed Mallya's plea seeking a stay on order passed by the Special PMLA Court directing confiscation of his properties.
Special PMLA court declared Mallya a fugitive economic offender under provisions of the said act in early January 2019. Then, Mallya challenged the validity of FEO Act itself and also specific provisions of the act that deal with confiscation of assets and placing them under the control of the Union government.
In his application, Mallya had submitted that any decision of the Spl PMLA Court must be subject to final decision in his challenge to the FEO Act.
Senior Counsel Amit Desai appears on behalf of Mallya, he argued that the act is draconian as under it the Union government was allowed to confiscate properties irrespective of whether a property was bought from the proceeds of alleged crime or not.
Mallya, charged with wilful default of loan amounting to more than Rs. 9000 cr, is facing allegations of fraud, money laundering and violations of FEMA (Foreign Exchange Management Act).