Vijay Mallya is wanted in India for alleged default on Rs 9,000 crore loans for Kingfisher Airlines

Vijay Mallya became the first tycoon to be charged under a new anti-fraud law, with a court in Mumbai today naming him as an offender under the Fugitive Economic Offenders Act, 2018.

The anti-corruption court was hearing an application by the Enforcement Directorate, seeking a direction to declare Mr Mallya a fugitive economic offender.

Over the last few months, several high-profile businessmen including Nirav Modi and Mehul Choksi have been under the government's radar for alleged financial crimes running into thousands of crores.

The new law to catch people who flee abroad after committing financial crimes was signed by the President in August last year. It was aimed at stopping a growing number of high-profile economic offenders fleeing the country to avoid legal action.

According to the new law, a fugitive economic offender is a person against whom an arrest warrant has been issued for his or her involvement in economic offences involving at least Rs 100 crore or more and has left India to avoid prosecution.

A court in the UK last month said Mr Mallya can be extradited to India to face fraud investigations. He is wanted in India for defaulting on Rs 9,000 crore in loans to his failed Kingfisher Airlines.

The court had said it was satisfied with the assurances provided by the Indian government, including a video of the jail cell, which had not only been recently redecorated but was also far larger than the minimum requirement threshold.

The businessman remains on bail on an extradition warrant executed by Scotland Yard in April 2016 after Indian authorities brought fraud and money laundering charges against him.