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Mallya case: ED using fugitive law may hit lenders' prospects

Mallya case: ED using fugitive law may hit lenders' prospects

Finance
The Enforcement Directorate (ED) may use the latest weapon in its armoury — the Fugitive Economic Offenders Ordinance — to deal with Vijay Mallya, a move that could hurt lenders’ efforts to recover dues from the businessman who fled the country more than two years ago. ED sources said the new fugitive law gives precedence to state dues over any claims under civil cases, including Mallya’s application to the Karnataka High Court seeking permission to repay banks by selling his assets seized by the agency that probes money-laundering cases. Indian banks are working closely with UK authorities to recover the maximum out of the assets owned by Mallya, after a British court allowed them to search and seize his properties. They are worried because the ED could stake claim on Mallya’s