‘Fugitive Economic Offenders Bill’ Approved By Cabinet For Defaulters Who Escape From Country

The Logical Indian Crew

March 2nd, 2018 / 6:23 PM

Image Credits: Arun Jaitley

A ‘Fugitive Economic Offenders Bill’ has been approved by the Cabinet yesterday to extradite the fugitives who escape to other countries to avoid arrest. This bill empowers the government to confiscate the properties of such offenders in India.

Besides this, the cabinet has also approved the establishment of ‘National Financial Reporting Authority’ (NFRA) that shall be an independent regulator for the auditing profession. It was a key change that was brought about by the ‘Companies Act 2013’. The offender’s bill aims at restraining offenders like Nirav Modi to escape from country and the judicial trial.


What does the Finance Minister say?

There was a press conference held yesterday in Delhi where Finance Minister Arun Jaitley spoke. He said as quoted by The Indian Express, “Fugitive Offenders Economic Bill 2018 has been brought to confiscation of assets of a fugitive, including Benami assets. There will also be the provision to confiscate those assets outside India, but cooperation of that country will be needed. On the other hand, the jurisdiction of NFRA for investigation of Chartered Accountants & their firms under section 132 of the Act would extend to listed companies & large unlisted public companies, the threshold for which shall be provided in the Rules.”

The Finance Ministry also said that the high-value economic offenders escaping from India call for a serious thought over the rule of law in India. Therefore, a sufficient‘ constitutionally permissible deterrent’ is required to make sure such actions do not take place in future.


Who is a ‘Fugitive Economic Offender’?

The explanatory note to the Draft Bill says, “A Fugitive Economic Offender is a person who has an arrest warrant issued in respect of a scheduled offence and who leaves or has left India to avoid criminal prosecution, or refuses to return to India to face criminal prosecution.”


Rights that an Economic Offender loses

The Draft Bill further says, “At the discretion of any court, such person or any company where he is a promoter or key managerial personnel or majority shareholder may be disentitled or bringing forward or defending any civil claim. If at any point in time in the course of the proceeding before the declaration, however, the alleged fugitive economic offender returns to India and submits to the appropriate jurisdictional court, proceedings under this act would cease by law.”


When was the draft version of the bill introduced?

The draft version of the Bill was introduced last year when Supreme Court declared Vijay Mallya guilty of contempt. He was asked to appear before the court on July 10th, 2017.  He owes more than Rs 9000 crores to the banks.

Recently, A series of scams were unearthed by the authorities, standing first in the line, Punjab National Bank reported India’s largest banking scam of 12,636 crores or more by Jewellery designer Nirav Modi and his Uncle, owner of Gitanjali Jewels, Mehul Choksi. They both have left the country.


Contributors

Written by : Poorbita Bagchi

Edited by : Pooja Chaudhuri

Share your thoughts..

Related Stories

CBI Brings Back Mohammad Yahya

First Success Of Its Kind, CBI Brings Back Fugitive Economic Offender From Bahrain

Fugitive Economic Offenders Ordinance, 2018 Gets Passed; Allows Authorities To Attach And Confiscate The Properties

Rajya Sabha Passes Insolvency Amendment Bill, Barring Offenders From Bidding For Troubled Assets

Under Criticism Of Corruption, Union Cabinet Approves Bill To Replace Medical Council Of India With National Medical Commission

No Detention Policy

Union Cabinet Approves Bill That Allows Schools To Fail Students In Std V & VIII

Sold To A Brothel At The Age Of Six In Kolkata, This Girl Is Set To Study Law To Punish The Offenders

Latest on The Logical Indian

Get Inspired

Indian-American Woman Honoured With Presidential Award By White House For Her Work Against Human Trafficking

News

Amritsar Train Tragedy: Punjab CM Orders Magisterial Inquiry Into The Accident Which Killed Over 60

News

Areas Surrounding Siang River Alerted Of Flash Floods After Formation Of Artificial Lake In Tibet

Awareness

School Management Committee – Delhi Govt’s Initiative To Involve Parents In Decision Making Of Schools

Awareness

Are We Eating Poison Today? A Look At The Incessant Use Of Pesticides In Our Food

News

Good News: Population Of Ganga River Dolphins Rises To 33 From 22 In 2015

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.