Friday, April 10, 2020
Home Opinions Fugitive Economic Offenders Bill : How Modi Government plans to prevent future absconders like...

Fugitive Economic Offenders Bill : How Modi Government plans to prevent future absconders like Mallya

Also Read

Naina
Dreamer, Thinker, Nationalist, Writer, Political Junkie.

The rising instances of white collar crimes and offences have led the Modi Government to draft “Fugitive Economic Offenders Bill 2017”. This Bill is extremely significant and is a step towards protecting the Nation’s financial interest, especially in evasion cases such as of Vijay Mallya and Nirav Modi who have defaulted on repaying loans worth thousands of crore and have fled the country.

Union Law Ministry has approved “Fugitive Economic Offenders Bill” to empower the government to confiscate the property of economic offenders and defaulters who flee India. The bill seeks to deter economic offenders from evading the process of Indian law by fleeing the country

The bill was drafted in pursuance of Finance Minister Arun Jaitley’s 2017-2018 Budget speech, promising legislative changes or even law to confiscate the assets of such fugitives. Finance Ministry had prepared the draft and sought Law Ministry’s opinion on it.

- article continues after ad - - article resumes -

Who according to the bill, is classified as Fugitive Economic Offender? The Bill defines ‘Fugitive Economic Offender’ as an individual against whom warrant for arrest in relation to the economic offence has been issued and the person has left the country and refuses to return to India to face criminal prosecution. The burden of proof for establishing that the individual is a Fugitive Economic Offender rests on the authorities.

The proposed bill will be applicable in cases where the value of offences is over Rs 100 crore. It will allow Financial Intelligence Unit (FIU), the premier technical snoop wing under the finance ministry to file an application for the declaration of Fugitive Economic Offender for the confiscation of their assets.

Bill entrusts such cases to be tried under Prevention of Money Laundering Act 2002 (PMLA)”. The Bill has provision for appointment of an administrator to dispose of property of fugitive offender to pay off the creditors. Besides, it has provisions to override provisions of other existing laws.

The Bill mentions two consequences for Fugitive Economic Offenders:

  1.  Any property involved in the offence that the individual is blamed for as well as any property owned in India by a fugitive offender will be confiscated. Such properties will become vested with the government, free from all encumbrances.
  2. If such a person is a promoter/key managerial personnel/shareholder of any company, he/she will not be allowed to present or defend any civil claim.

The draft bill covers a wide range of offences including wilful loan defaults, cheating and forgery, forged or fraudulent document of electronic records, duty evasion and non-repayment of deposits among others. The Union Law Ministry wants “Saving Clause” to be incorporated in the Bill before it is introduced in Parliament. Saving clause provides for a certain exception(s) in a statute. It enables repealed the law to be in force with respect to some existing rights as provisions of the proposed bill has bearing on the provisions of existing laws.

The existing laws under which such fugitive economic offender are tried include Recovery of Debts Due To Banks and Financial Institutions Act (RDDBFI)”, “Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (SARFESI)” and “Insolvency and Bankruptcy Code (IBC)”.

Modi government is addressing the problem of NPA’s it received as a legacy from the previous corrupt Congress government, which are being recognized only recently by RBI Governor Urjit Patel. Earlier NPA accounts were not shown, evergreening was done and NPA’s were hidden by restructuring mechanisms such as corporate debt restructuring.

Modi government has carried out various reforms for rebuilding the strength of public sector banks since it came to power like Integration of State Bank of India and Recapitalisation, passing of new Insolvency and Bankruptcy code for time-bound recovery of loans.

Modi government is planning to bring law to tighten the noose on fraudsters like Nirav Modi and Mehul Choksi. The government is likely to introduce the Fugitive Economic Offenders Bill” in the second part of Budget Session commencing on March 6. The Bill will enable the government to impound and sell assets of absconding corporate defaulters and also allow recovery of dues through special court.

Once implemented this bill will enforce strict adherence to the law by curbing instances of economic defaults and controlling economic losses the country has to bear due to such offences.

- Support OpIndia -
Support OpIndia by making a monetary contribution

Trending now

Naina
Dreamer, Thinker, Nationalist, Writer, Political Junkie.

Latest News

Prayagraj: Police book university professor Mohammad Shahid for concealing information about attending Tablighi Jamaat event in Delhi

The varsity administration may also initiate action under against Prof Shahid for not following the health protocol and risking lives

Bhagalpur, Bihar: Muslim youth pelt stones and open fire at Police after being asked to go home on Shab-e-Barat

Stones were pelted at the Police at Bhagalpur in Bihar when they attempted to prevent Muslims from gathering in large numbers on the occasion of Shab-e-Barat in the wake of the Wuhan Coronavirus pandemic.

Hindpiri, Ranchi: Sanitation workers refuse to disinfect the area after residents spit at them, throw spit-ridden 10 rupees notes at them

Residents of Hindpiri spit on sanitation workers trying to disinfect area after numerous cases of the Wuhan Coronavirus was reported there.

Javed, Nadeem, Isaq and Azad arrested for attack on ASHA workers and police personnel in Panchkula, Haryana: Read details

Police have arrested four youths in Panchkula, Haryana for attack a team of ASHA and Anganwadi workers who were conducting a survey in the colony

Madhya Pradesh: 40 people who were found offering namaz in a mosque in Chhindwara amidst coronavirus lockdown booked

Case registered under Epidemic Act against 40 Muslim individuals who were found offering namaz en masse at a mosque in Madhya Pradesh

MP CM Shivraj Singh Chouhan transfers Rs 700 crores to CM’s Relief Fund to fight Coronavirus, was earmarked by Kamal Nath for IIFA

The IIFA event was to be held in March 2020 at an expense of ₹700 crores in Madhya Pradesh, and it is this amount that CM Shivraj Singh Chouhan transferred to CM Relief Fund

Recently Popular

Did you know that the Prime Minister’s National Relief Fund had the President of Congress party in its managing committee

After PM Modi launched PM CARES Fund, a lot has been discussed about similarities and differences between PM CARES Fund and PMNRF

As India fights Wuhan Coronavirus, here is a list of prominent Hindu Temples and religious leaders helping India through donations and welfare

In the wake of the Coronavirus crisis, numerous Hindu temples have come forward to contribute generously, both in terms of food and welfare, to help the country.

Yes, Nandita Das, there are two Indias that exist – one where the labourers live and the other, from where your father was evicted

About how the Coronavirus lockdown has impacted migrant labourers, Nandita Das said that there exists two Indias

Tablighi Jamaat had planned a ‘fidayeen’ attack on India by spreading the deadly coronavirus: UP Shia Waqf Board chief Waseem Rizvi

Rizvi also said that there is a distinct possibility of radical Islamist Zakir Naik being involved in Tablighi Jamaat conspiracy to spread coronavirus in the country.

Islamists attack Delhi CM Arvind Kejriwal after he asks them to stay at home on Shab-e-Baraat

AAP Supremo took to social media to request Muslims to stay at home for Shab-e-Baraat, which is being celebrated on the intervening night of 8th and 9th April.

Subscribe to our newsletter

Each morning, get an email to keep updated with all the news, opinions and analysis published by OpIndia.

Connect with us

218,254FansLike
277,978FollowersFollow
215,000SubscribersSubscribe
Advertisements