UPSC Articles
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.
