Fugitive economic offenders bill needs to be tweaked, say analysts

BAN ON OFFENDERS CONTESTING THE CONFISCATION OF ASSETS IS AMONG KEY CONCERNS

MUMBAI: The Fugitive Economic Offenders Bill has been termed as a strong deterrent to people fleeing the country after committing a crime but experts say that flaws in the proposed legislation could be used to challenge the law in courts. The blanket ban on offenders contesting the confiscation of their properties through civil suits, sale of property without trial, and deterioration in value of seized assets and finding suitable buyers are some of the concerns around the new law.

The Union cabinet on Thursday approved the draft law after Nirav Modi and Mehul Choksi, accused in the ₹12,636 crore Punsuch jab National Bank (PNB) fraud, failed to appear before enforcement agencies. A special Prevention of Money Laundering Court (PMLA) on Saturday issued nonbailable warrants against the two for not responding to summons by the Enforcement Directorate (ED). To be sure, the law will not be effective retrospectively; so, the likes of Modi and Choksi may not be impacted. However, a director of a designated agency as ED or Central Bureau of Investigation can move an application to declare someone as an economic offender if the crime is already committed. This would bring them under the purview of the new law.

“For offences which have been committed even before the coming into effect of the Bill as an Act, it could be construed that an application could lie to declare the said offender as a fugitive economic offender,” said Sandeep Grover, partner at Indus Law, a law firm. The bill provides for proclaiming an economic offender who has fled the country as a fugitive and confiscating his or her assets before conviction in cases where the offence is for amounts above ₹100 crore.