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It could be named the “Vijay Mallya law.”

Infuriated at its inability to bring the flamboyant liquor baron back to India from the UK, the Indian government is planning to introduce a new law that will allow it to seize the Indian assets of corporate tycoons who flee the country to avoid settling disputes over their unpaid debts.

Arun Jaitley, the finance minister, announced the proposal while unveiling the country’s annual budget for the upcoming financial year, which begins April 1.

Mr Mallya, who has been locked in a bitter battle with banks over the high level of unpaid debts left by the collapse of his erstwhile Kingfisher Airline, has denied fleeing India, but has refused to return for court hearings or negotiations.

The Indian government is planning to begin formal extradition proceedings against him, after filing criminal charges against him last week.

Copyright The Financial Times Limited 2017. All rights reserved.
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