Union Cabinet Approves Ordinance to Seize Property of Economic Fugitives

Now it requires the President's approval.

New Delhi, April 21: The Union Cabinet on Saturday approved the promulgation of Fugitive Economic Offenders Ordinance 2018 which would allow the Centre to seize the domestic assets of those deemed by a court as economic offenders, reports PTI. In its release, the government said, “The Ordinance would lay down the measures to empower Indian authorities to attach and confiscate proceeds of crime associated with economic offenders and the properties of economic offenders and thereby deter them from evading the process of Indian law by remaining outside the jurisdiction of Indian courts.”

The Ordinance was approved by the Cabinet in a meeting headed by Prime Minister Narendra Modi and would come into effect after the President’s approval. The ordinance is expected to force economic offenders to come back and face trial. It provides for seizing their property without conviction and selling it off to pay off lenders. It defines a fugitive economic offender as someone against whom an arrest warrant has been issued for offences like counterfeiting government stamp or currency, dishonour of cheque, money laundering and defrauding creditors. Such offenders would be tried under the Prevention of Money Laundering Act.

The Bill, that is meant to deter people from committing economic offences like Nirav Modi and Vijay Mallya before fleeing the country, was introduced in the Parliament on March 12 but could not be passed due to frequent disruptions.

Meanwhile, Punjab National Bank (PNB) has moved Hong Kong High Court against tainted diamond merchant Nirav Modi. The bank said it will also move courts in other countries where Nirav Modi and his uncle Mehul Choksi have assets. This comes as the latest in a series of moves to help the bank recover its losses in the Rs 10,000 crore fraud committed by Nirav.