Fugitives' assets to be seized san conviction

Unfolding bank scams since celebrity diamond jewellers Nirav Modi and Mehul Choksi fled from India forced the Modi government to hurry with the Fugitive Economic Offenders Bill that was in the making for the past many months.

The Union Cabinet on Thursday cleared it for introduction in the second half of Parliament’’s budget session beginning on Monday to provide for confiscation of all assets without conviction in cases where the economic offenders flee the country.

The Bill empowers the courts to declare a person as a fugitive offender, order confiscation of all his assets in India and pay off the lenders by selling them.

Finance Minister Arun Jaitley, who briefed the media on the Cabinet decisions, said the Bill would also enable confiscation of the assets abroad, though it will require appropriate arrangements with the foreign countries.

Lest it results in over- crowding of the small fugitives, the action under the Bill will take place only where the default is of Rs 100 crore or more, Jaitley said.

The basic purpose is to ensure quicker recovery of dues through a special court from the absconding corporate defaulters.

The Finance Minister said there would be several consequences of the Bill, including a provision under which the person will not be able to pursue any civil claim in the country.

The Bill will define a schedule of offences to be covered and activated against those avoiding the court warrants.

Jaitley said the Cabinet also cleared the rules to be notified shortly under the Company Act for constituting a National Financial Reporting Authority (NAFRA) to keep a tab on all listed companies and unlisted large companies, which are the major players in the financial world, while other companies will continue to be covered by the members of the Institute of Chartered Accountants.

The Fugitive Economic Offenders Bill will empower the courts to declare a person as a fugitive offender, order confiscation of all his assets in India and pay off the lenders by selling them