Fugitive Economic Offenders Bill tabled in Lok Sabha

New Delhi, July 19: The Monsoon Session of the lower house saw a drama directed by the opposition parties but along with this one of the important bills which can change the scenario in Indian administration was tabled on Wednesday.

 

The Fugitive Economic Offenders Bill, 2018 was introduced in the Lok Sabha on Wednesday.

The bill has been brought to help the government in confiscating properties of economic offenders who have absconded the country to avoid prosecution.

Introducing the Bill, Finance Minister Piyush Goyal said, offenses involving 100 crore rupees or more will fall under its purview.

The bill aims to curb the practice of evading criminal prosecution by economic offenders (wilful defaulters) who flee from country to evade clutches Indian law by remaining outside the jurisdiction of Indian courts.

It is applicable in cases where total value involved in such economic offences is Rs.100 crore or more. It keeps banks and other financial institution at Centre and provide help to them recover amount.

This bill gives the government a right confiscate the property of such economic offenders in India and abroad. Its provisions are also being applicable on proxy-owned properties of economic offenders in India and abroad. In other words, the bill cut the feathers of those who are planning to flee from the country after their frauds come in scenes like Vijay Mallya and Nirav Modi.

The absence of such offenders from Indian courts has several deleterious consequences - first, it hampers investigation in criminal cases; second, it wastes precious time of courts of law, third, it undermines the rule of law in India. Further, most such cases of economic offences involve non-repayment of bank loans thereby worsening the financial health of the banking sector in India. The existing civil and criminal provisions in law are not entirely adequate to deal with the severity of the problem. It is, therefore, felt necessary to provide an effective, expeditious and constitutionally permissible deterrent to ensure that such actions are curbed.

Lets see what the bill says further:

• 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.