New Delhi, Aug 5(PTI): President Ram Nath Kovind has today given his nod to the Fugitive Economic Offenders Bill 2018 that will deter offenders to evade legal process in India and flee the country.
A fugitive economic offender is an individual against whom warrants for arrest is issued for his involvement in select economic offences involving an amount of at least Rs 100 crore or more and has left India so as to avoid criminal prosecution. Kovind gave assent to Fugitive Economic Offenders Act, 2018, according to an official order.
The Bill was passed by the Parliament on July 25 during the Monsoon Session after being cleared by Lok Sabha without any amendment. The ordinance was tabled in Rajya Sabha by Finance Minister Piyush Goyal.
The new legislation will prevent big economic offenders like Vijay Mallya and Nirav Modi from fleeing the country and evading the law.
Both Mallya and Modi, wanted in cases being probed by the Central Bureau of Investigation (CBI), are out of India.
What is Fugitive Economic Offenders Bill 2018?
The Fugitive Economic Offenders Bill 2018 empowers authorities to attach and confiscate properties as well as assets of economic offenders like loan defaulters who flee the country.
It re-establishes the rule of law where the accused will be forced to return to India and face trial for his offences.
This would help the financial institutions to recover a higher amount from such fugitive economic offenders.
Provisions under Fugitive Economic Offenders Bill 2018
The ordinance makes provisions for a 'Special Court' under the Prevention of Money-Laundering Act, 2002 to declare a defaulter as 'Fugitive Economic Offender' who can be identified as a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India or if abroad, refuses to return to avoid criminal prosecution.
Further, in order to ensure that courts are not over-burdened with such cases, only those cases are included in the purview of this ordinance where the total value involved in such offences is 100 crore rupees or more.
Other provisions of the Bill
Making an application before the special court for a declaration that an individual is a fugitive economic offender
Attachment of the property of a fugitive economic offender and proceeds of crime
Issue of a notice by the special court to the individual alleged to be a fugitive economic offender
Confiscation of the property of an individual declared as a fugitive economic offender or even the proceeds of crime
Disentitlement of the fugitive economic offender from defending any civil claim
Appointment of an administrator to manage and dispose the confiscated property under the act