Government brings ordinance to rein in 'eco' fugitives

In a bid to deter economic offenders from evading the law of the country, the Union Cabinet on Saturday approved a proposal to promulgate the Fugitive Economic Offenders Ordinance 2018. The move is a big blow to India's erstwhile top businessmen-cum-economic fugitives – Vijay Mallya, Nirav Modi, Mehul Choksi, Jatin Mehta and others – who fled the country to evade criminal prosecution. The ordinance seeks to confiscate properties of such economic fugitives.

The bill will also help the financial institutions to achieve higher recovery from the defaults committed by such economic fugitives. Currently, there are approximately 31 top economic fugitives who are absconding and hiding in various countries after defaulting various banks and carrying out scams.

The government took the decision after it faced wrath from all quarters after liquor baron Vijay Mallya fled the very day the banks, to which he owed over Rs 9,000-crore, moved the Debt Recovery Tribunal (DRT). Mallya escaped to London through Delhi on March 2, 2016.

The government came under the scanner again after tainted diamond merchants Nirav Modi and his uncle Mehul Choksi fled India in January after defaulting around Rs 19,000 crore of various banks.

The new law will empower authorities to attach and confiscate proceeds of crime and the properties of economic offenders. There would be a special forum for expeditious confiscation of the proceeds of crime, in India or abroad.

This will coerce the fugitive to return to India and face the law.

The ordinance has been approved in order to address the deficiency in the present laws and lay down measures to deter economic offenders from evading the process of Indian law. But the provisions of the ordinance will be applicable to only those offenders where the total value involved in the offence is Rs 100-crore or more. The economic fugitive will be tried under the Prevention of Money-laundering Act, 2002.

The move will empower the Enforcement Directorate and Central Bureau of Investigation (CBI) to carry out investigation into the cases against economic offenders.

SWINDLERS’ LIST

• Rs 12,636 cr fraud by Nirav Modi & family at PNB
• Rs 9,000 cr Vijay Mallya owes a group of banks
• Rs 7,000 cr Jatin Mehta owes a group of banks
• Rs 5,000 cr Bank fraud by Chetan & Nitin Sandesara
• Rs 125 cr Lalit Modi siphoned from BCCI

TO NAB AN ECONOMIC THIEF

• The fugitive economic offenders bill aims to force super-rich escapees to return to India and face trial
• It also seeks to help scandal-hit banks and financial institutions to achieve higher recovery
• A special forum will be created for quick confiscation of the proceeds of crime, in India or abroad

Rs 100-cr club

• The provisions of the ordinance will be applicable to only those offenders where the total value involved in the offence is Rs 100-crore or more. The economic fugitive will be tried under the Prevention of Money-laundering Act, 2002.