Cabinet approves Ordinance to confiscate properties of fugitive economic offenders
New Delhi, April 21: In a bid to bring back defaulters of huge bank loans who escape to refuges abroad, the Union Cabinet on Saturday approved an ordinance that would provide for attachment and confiscation of the properties of the economic offenders.
The decision to issue The Fugitive Economic Offenders Ordinance, 2018 was taken at a meeting of the Cabinet presided over by Prime Minister Narendra Modi which comes in the wake of the recent multi-crore Punjab National Bank fraud case, in which the main accused diamond trader Nirav Modi and his uncle Mehul Choksi fled the country after duping the bank to the tune of over Rs. 30,000 crore.
Some other similar offenders, including businessman Vijay Mallya, who headed the now-defunct Kingfisher Airlines, also escaped to London a few years after running up huge debts to consortiums of banks.
Sources said the Ordinance aims at deterring economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts.
Under the ordinance, a special forum would be created for expeditious confiscation of the proceeds of crime, in India or abroad, that 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.
The Ordinance makes provisions for a 'Special Court' under the Prevention of Money-laundering Act, 2002 to declare a person as a Fugitive Economic Offender.
A Fugitive Economic Offender is described as 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.
A scheduled offence refers to a list of economic offences contained in the Schedule to this Ordinance. Further, in order to ensure that Courts are not over-burdened with such cases, only those cases where the total value involved in such offences is Rs 100 crore or more, is within the purview of this Ordinance.
According to the sources, the Ordinance 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.
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 sources said.
The proposed ordinance, among other things, provides for making an 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 and proceeds of crime and issue of a notice by the Special Court to the individual alleged to be a fugitive economic offender.
It also provides for confiscation of the property of an individual declared as a fugitive economic offender or even the proceeds of crime; disentitlement of the fugitive economic offender from defending any civil claim and appointment of an Administrator to manage and dispose of the confiscated property under the Act.
Sources said since the approved law would utilise the existing infrastructure of the Special Courts constituted under the Prevention of Money-laundering Act, 2002 and the threshold of scheduled offence is high at Rs 100 crore or more, no additional expenditure is expected on the enactment of the Ordinance.
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Om Birla attends swearing-in of new B'desh PM, says India stands ready to support BNP govt
New Delhi (PTI): Lok Sabha Speaker Om Birla on Tuesday attended the swearing-in ceremony of new Bangladesh Prime Minister Tarique Rahman in Dhaka, and said India stands ready to support Bangladesh's endeavours to build a democratic, progressive and inclusive nation.
Separately, the speaker called on the new Bangladesh prime minister and conveyed the wishes of Prime Minister Narendra Modi.
He also handed over an invitation from Prime Minister Modi to Rahman to visit India, officials said here.
“Glad to attend the swearing-in ceremony of the new government of Bangladesh led by Prime Minister Tarique Rahman in Dhaka today. India stands ready to support Bangladesh’s endeavours to build a democratic, progressive and inclusive nation,” Birla posted on X.
Bangladesh High Commissioner to India, Riaz Hamidullah, said in a post on X, “Prime Minister Tarique Rahman conveys his greetings to India and PM Narendra Modi to the visiting India Lok Sabha Speaker Om Birla at a courtesy meet following the swearing-in of the new government.
“Speaker Birla conveyed wishes and an invitation to India. Both leaders expressed optimism to work together for the well-being of the people of Bangladesh and India, pursuing a people-centric menu of cooperation.”
Birla also met Maldives President Mohamed Muizzu, Bhutan Prime Minister Tshering Tobgay and other leaders on the sidelines of the event.
Led by Rahman, the Bangladesh Nationalist Party (BNP) swept to power with a two-thirds majority with 49.97 per cent votes and 209 seats in the polls held on February 12, results for which were declared on February 13.
The Jamaat-e-Islami, which was opposed to Bangladesh's independence from Pakistan in 1971, registered its best-ever performance with 31.76 per cent votes and 68 seats.
The National Citizen Party (NCP) secured the third-highest number of seats, six, and 3.05 per cent votes.
Bangladesh had invited Narendra Modi to the ceremony, but the prime minister could not attend the event as he was scheduled to hold talks with French President Emmanuel Macron in Mumbai on Tuesday.
On reaching Dhaka, Birla said the swearing-in of Rahman was an important moment that would strengthen people-to-people relations and shared democratic values between the two neighbours.
“Honoured to be in Dhaka representing India at the swearing-in ceremony of the new government led by Tarique Rahman as the prime minister. It's an important moment that will strengthen people-to-people ties and shared democratic values between our two nations,” Birla said.
Birla was accompanied by Foreign Secretary Vikram Misri and other officials.
