Money laundering and fugitive offender issue

  • IASbaba
  • May 15, 2020
  • 0
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Money laundering and fugitive offender issue

Part of: GS Prelims and GS-III – Money Laundering

In News:

  • The UK High Court rejected businessman Vijay Mallya’s plea for permission to move the UK Supreme Court (SC). 
  • He wanted to challenge the lower court’s approval of his extradition to India in the IDBI Bank fraud case.

Key takeaways:

  • The UK government may soon issue a directive allowing his extradition. 
  • It is important to bring him back within 28 days after he exhausts all legal avenues. 
  • He may be brought on board a special plane, as international flight operations have been suspended due to the global lockdown.

Important value additions:

  • The case was registered against Vijay Mallya for fraud, misrepresentation to the bank in securing credit facilities, conspiracy and money laundering
  • The Enforcement Directorate (ED) of India attached assets worth Rs.13,000 crore in connection with the cases against him. 
  • On its request, a Mumbai court declared him a fugitive under the Fugitive Economic Offenders Act.

Enforcement Directorate

  • It is a law enforcement and economic intelligence agency. 
  • It is responsible for enforcing economic laws and fighting economic crime in India.
  • It is part of the Department of Revenue, Ministry of Finance, Government Of India. 
  • The prime objective of the agency is the enforcement of two key Acts – 
    • Foreign Exchange Management Act 1999 (FEMA)
    • Prevention of Money Laundering Act 2002 (PMLA)

The Fugitive Economic Offenders Act, 2018 

  • It empowers any special court to confiscate all properties and assets of economic offenders who are charged in offences measuring over ₹ 100 crores and are evading prosecution by remaining outside the jurisdiction of Indian courts. 

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