Initiating the first action under the recently promulgated Ordinance by the Centre to deal with fugitive bank loan defaulters, a special Prevention of Money laundering Act (PMlA) court in Mumbai on Saturday summoned beleaguered businessman Vijay Mallya to appear before it on August 27 on the Enforcement Directorate's (ED’s) plea seeking action against him under the fugitive economic offenders ordinance in the over Rs 9,000 crore bank fraud case.
Special judge M.S. Azmi, dealing with the PMlA cases, issued the notice to Mallya after taking cognisance of the second ED charge sheet filed against him recently and a subsequent application by it on June 22 seeking a fugitive economic offenders tag.
This is the first time that action has been initiated under the ordinance, recently promulgated by the Modi government to deal with fugitive bank loan defaulters.
The ED has also sought immediate confiscation of assets worth around Rs 12,500 crore of Mallya and other fugitive economic offenders.
If Mallya does not appear before the court, he risks being declared a fugitive economic offender, besides properties linked to him being confiscated.
The court had issued non-bailable warrants against him in the two cases filed by the ED.