New Delhi: A special anti-money laundering court in Mumbai has declared Vijay Mallya a fugitive economic offender.

Mallya is the first tycoon to be tagged as fugitive economic offender, under the new law to prevent financial fraud. The tag allows the government to seize his properties in the country.

Mallya fled to the United Kingdom in March 2016 owing more than $1 billion after defaulting on loan payments to the state-owned banks and allegedly misusing the funds. The loans from the state-owned IDBI Bank are intended to bail out his failed carrier Kingfisher Airlines.

The liquor baron is currently facing extradition from UK, after a court ordered his return to India to face fraud charges.

The Central Bureau of Investigation and the Enforcement Directorate are investigating Mallya’s financial dealings.