Ordinance on economic fugitives cleared

Tribune News Service

New Delhi, April 21

To check economic offenders like Nirav Modi from fleeing the country, the Union Cabinet on Saturday approved a Finance Ministry proposal to promulgate the Fugitive Economic Offenders Ordinance, 2018. The Fugitive Economic Offenders Bill, tabled in the Lok Sabha on March 12 during the Budget session and listed for consideration several times, could not be passed owing to the logjam in Parliament.  

The ordinance, which comes into effect after it is approved by the President, would lay down measures to empower the authorities to attach and confiscate the proceeds of crime associated with economic offenders and the properties of such offenders, thereby deterring them from skirting the law by keeping themselves outside the jurisdiction of Indian courts.

It is expected to re-establish the rule of law with respect to fugitive economic offenders as they would be forced to return to India to face trial. This would also help banks and other financial institutions achieve higher recovery in case of payment defaults.

The ordinance has a provision for a “special court” under the Prevention of Money Laundering Act, 2002, to declare a person a ‘fugitive economic offender’ — one 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 face criminal prosecution. Further, to ensure that courts are not overburdened, only cases where the total sum involved is Rs 100 crore or more will come within the purview of the ordinance.

There have been instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating commencement or during the pendency of criminal proceedings. Sources said the absence of such offenders had several deleterious consequences such as hampering investigation.