Kovind approves fugitive economic offenders law

new delhi — President Ram Nath Kovind has given assent to promulgation of the Fugitive Economic Offenders Ordinance, 2018, giving authorities powers to attach and confiscate the proceeds of crime and properties of economic offenders like bank fraudsters or loan defaulters fleeing the country.

The Fugitive Economic Offenders Ordinance, 2018, is aimed at deterring economic offenders from evading the process of law by remaining outside the jurisdiction of Indian courts, an official statement said.

“The need for the Ordinance has arisen as there have been instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings,” it said without naming anyone.

The law is aimed at quickly recovering losses to exchequer or public sector banks in cases of frauds like the alleged $2 billion fraud by fugitive jeweller Nirav Modi.

Giving reasons for the law, the statement said the absence of such offenders from Indian courts hampers investigation and wastes court time and undermines the rule of law. “The existing civil and criminal provisions in law are not entirely adequate to deal with the severity of the problem,” it said.

Finance Minister Arun Jaitley had in his Budget for 2018-19 had said the government was considering to bring a new law to confiscate the assets of such absconders.

The Fugitive Economic Offenders Bill, 2018 was introduced in the Lok Sabha on March 12 but couldn’t be taken up due to logjam in parliament over different issues. — PTI