Law on fugitives to cover wide-ranging white-collar crimes
NEW DELHI: The government on Monday introduced a bill in the Lok Sabha seeking punitive powers to target fugitives who have committed white-collar crimes.
Significantly, the brief of the proposed legislation is much wider than the initial draft that had been put out by the government last year.
The provisions of the fugitive economic offenders bill 2018 will extend to not only loan defaulters and fraudsters but also to those individuals who violate laws governing taxes, black money, benami properties, financial sector and corruption.
Earlier this month, the cabinet had cleared a bill that seeks to give the government powers to attach assets of offenders who are outside the country and do not return to India to face prosecution proceedings even after an arrest warrant is issued.
The bill will be applicable for all offences where the monetary value exceeds ₹100 crore.
According to the provisions of the bill, all individuals attempting to elude the Indian legal process from the date of the enactment of the law will be covered.
The confiscation of property will not be limited to those acquired through the proceeds or profits of the crime. The bill also provides for confiscation of benami properties.
The enforcement directorate will be the apex agency that will implement the provisions of the bill. The government has also inserted a clause to protect itself and the officers from any legal suits.
J N Gupta, managing director at Stakeholders Empowerment Services, a proxy advisory firm, welcomed the legislation.
The bill was initially envisaged in budget 2017 to bring to task wilful defaulters such as liquor baron Vijay Mallya.
However, the urgency for its introduction increased after the
recent ₹12,636 crore scam, perpetrated by jewellers Nirav Modi and Mehul Choksi, hit Punjab National Bank.
The government pushed through with tabling the bill in the Lok Sabha despite heavy din and disruptions caused by the opposition. The Lower House ran for a little over 10 minutes before Speaker Sumitra Mahajan adjourned it for the day.
The motion for introducing the bill in the Lok Sabha was moved by minister of state for finance Shiv Pratap Shukla amid disruptions and protests by members from the Telegu Desam Party, YSR Congress Party, Trinamool Congress and the CPI(M) in the well of the House.
Shukla also tabled the Chit Funds (amendment) Bill to amend the 26-year-old Chit Funds Act. Chit funds will need to use the term “fraternity fund” to signify their nature.
Biju Janata Dal’s leader in the Lok Sabha Bhartuhari Mahtab, opposed the introduction of the fugitive economic offenders bill 2018, saying two provisions in the proposed legislation are against fundamental rights guaranteed in the Constitution. “You cannot restrain a person from going to the court of law to get justice. This bill restrains the person to go to the court of law.” Both houses of Parliament adjourned amid disruptions by the opposition.
Jatin Gandhi contributed to this story.