To ensure that there are fewer cases like Vijay Mallya, Nirav Modi the Union Cabinet on Saturday passed the proposal to promulgate Fugitive Economic Offenders Ordinance.
To ensure that there are fewer cases like Vijay Mallya, Nirav Modi the Union Cabinet on Saturday passed the proposal to promulgate Fugitive Economic Offenders Ordinance 2018. The Ordinance allows confiscating properties and assets of economic offenders like loan defaulters who flee the country. The bill could not be passed in the Budget Session due to disruptions.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Ordinance aimed at deterring economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. After Vijay Mallya, Nirav Modi and his uncle Mehul Choksi who are allegedly involved in the Rs 13,000 crore fraud at the Punjab National Bank fled the country. The Ordinance now awaits President’s nod.
The Ordinance is for economic offenders who refuse to return, persons against whom an arrest warrant has been issued for a scheduled offense as well as wilful bank loan defaulters with outstanding of over Rs 100 crore. The authorities can confiscate and sell properties of such offenders without even conviction. A fugitive economic offender is one who has left the country to avoid facing prosecution or refuses to return to face prosecution.
Any property belonging to the fugitive economic offender may provisionally be attached without the prior permission of the special court, provided that an application is filed before the court within 30 days.