A Special Prevention of Money Laundering Act (PMLA) Court in Mumbai declared absconding liquor baron Vijay Mallya as a fugitive economic offender. The directive by the anti-corruption court came on a plea by the Enforcement Directorate.

Mallya became the first to be hit hard by the new Fugitive Economic Offenders Act 2018.

The new anti-fraud law empowers the government to seize properties of individuals who flee the country to escape prosecution.

This is Mallya's second setback in the last one month. In December, a UK court had allowed his extradition to India to face trial for fraud and money laundering.

Special judge MS Azmi declared Mallya an FEO under Section 12 of the Act after hearing extensive arguments from the lawyer of Mallya and the ED counsel.

Mallya fled India in March 2016 over a Rs 9,000-crore bank loan fraud, but he has repeatedly denied fleeing the country and said he was ready to pay back the money he owed to the banks.

Twenty-seven defaulting businessmen and economic offenders have fled the country in the last five years.

Interpol has been approached to issue red corner notices (RCNs) against 20 persons out of these 27, Minister of State for Finance Shiv Pratap Shukla said in a written reply in Lok Sabha.

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