Why this ED move could hurt lenders' efforts to recover dues from Mallya

A consortium of Indian banks looking to liquidate Vijay Mallya's assets in Britain may face more hurdles in recovering their money. Earlier, a UK court had allowed them to search and seize properties of the fugitive liquor baron.

But, the Enforcement Directorate may play spoilsport in their efforts, according to an Economic Times report. The report says that the agency may use the latest fugitive law to stake its claims on the businessman's money.

The May 27 Ordinance gives certain law enforcing agencies powers to attach and confiscate the proceeds of crime and properties of economic offenders like bank defaulters or bank fraudsters fleeing the country, and is aimed at deterring economic offenders from evading the process of law by remaining outside the jurisdiction of Indian courts, according to news agency IANS.

On June 21, a special court in Mumbai ordered the arrest of fugitive liquor baron Vijay Mallya for his alleged involvement in a case of money laundering and cheating a consortium of banks of over Rs 60 billion.