New Delhi, May 19: First Vijay Mallya and now, Karti Subramaniam, both of them are amongst the highly influential people of India. Mallya and Chidambaram are ‘wanted’ but have left the country after the government caught them in fraudulent activities. Mallya has a debt charged on his heard of around Rs 9,000 crore while Karti Subramaniam is a part of a money laundering case of INX media. To escape the jurisdiction and other law bodies of India, these two fugitives have been on the run and escaped to London in their safehouse.
Thus, the Centre on Thursday placed the Fugitive Economic Offenders Bill, 2017 in public domain, seeking feedback and suggestions. The Bill proposes to aid in confiscation of assets of absconding high-value economic offenders, till they submit to the jurisdiction of the appropriate legal forum.
“It is widely felt that the spectre of high-value economic offenders absconding from India to defy the legal process seriously undermines the rule of law in India. It is necessary to provide an effective, expeditious and constitutionally permissible deterrent to ensure that such actions are curbed. To serve these ends, this Bill is being proposed,” states the explanatory note attached to the Bill.
In the Bill, “Fugitive Economic Offender” means any individual against whom a warrant for arrest in relation to a scheduled offence has been issued by any court in India, who:
(i) Leaves or has left India so as to avoid criminal prosecution, or
(ii) Refuses to return India to face criminal prosecution
Vijay Mallya and Karti Subramaniam aptly fit in the definition of “Fugitive Economic Offender” in their respective case of money laundering and involvement in various scams.
Some guidelines of the ‘confiscation order’ in this Bill are as follows:
(i) From the date of the confiscation order, all the rights and title in the confiscated property will vest in the Central Government, free from all the encumbrances.
(ii) The confiscated property will be used to satisfy the claims of the creditors in the final list.
(iii) In cases where any confiscated property is the subject matter of proceedings under the Insolvency and Bankruptcy Code, 2016, the administrator will follow the priority prescribed under the said Code for the satisfaction of claims under this section.
(iv) In cases where any confiscated property is the subject matter of proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 or the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the administrator will follow the priority prescribed under the said Acts for the satisfaction of claims under this section.
Read the Bill here: