Bharat SainiLast Updated on May 6, 2018 by Bharat Saini
Fugitive Economic Offenders Bill, 2018 that would help in laying down measures to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts, proposal of the Ministry of Finance, has been approved by the Union Cabinet chaired by Prime Minister Shri Narendra Modi on March 1, 2018, for introducing to the Parliament. Property of Fugitive Economic Offenders in cases where the total value involved in such offences is Rs.100 crore or more would be attached. As the existing legal provisions to confiscate the assets of offenders are regarded as somewhat inadequate, this Bill aims to make up for the shortcomings and provide a fresh legal framework that would enable the confiscation of the property of those evading prosecution by fleeing the country or remaining abroad. A Fugitive Economic Offender is a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution.
Finance Minister Arun Jaitley had announced in last year’s Union Budget that the government would soon bring about a law that would allow the state to take possession of properties belonging to offenders, like Vijay Mallya, who had fled the country to avoid being arrested for economic fraud. Now, the Union Cabinet has approved the Fugitive Economic Offenders Bill, 2018 after Diamond traders Nirav Modi and Mehul Choksi Rs. 12700 crore Punjab National Bank scam. It is expected that the special forum to be created for
expeditious confiscation of the proceeds of crime, in India or abroad, would coerce the fugitive to return to India to submit to the jurisdiction of Courts in India to face the law in respect of scheduled offences.
Salient features of the Bill
- 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;
- 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 resulting from the proceeds of crime;
- Confiscation of other property belonging to such offender in India and abroad, including benami property;
- Disentitlement of the fugitive economic offender from defending any civil claim; and
- An Administrator will be appointed to manage and dispose of the confiscated property under the Act.
However, if at any point of time in the course of the proceeding prior to the declaration the alleged Fugitive Economic Offender returns to India and submits to the appropriate jurisdictional Court, proceedings under the proposed Act would cease by law. All necessary constitutional safeguards in terms of providing hearing to the person through counsel, allowing him time to file a reply, serving notice of summons to him, whether in India or abroad and appeal to the High Court have been provided for.
The Bill is expected to re-establish the rule of law with respect to the fugitive economic offenders, as they would be forced to return to India to face trial for scheduled offences. This would also help the banks and other financial institutions to achieve higher recovery from financial defaults committed by such fugitive economic offenders, improving the financial health of such institutions.
