Cabinet clears Fugitive Economic Offenders Bill, assets to be confiscated without conviction

Fugitive Economic Offenders Bill is aimed at deterring economic offenders like jeweller Nirav Modi from fleeing the country or not returning to face trial.

Pic courtesy: ANI

New Delhi: The Union Cabinet on Thursday approved a stringent Fugitive Economic Offenders Bill that provides for confiscating assets without conviction in cases where economic offenders flee the country.

The bill is aimed at deterring economic offenders like jeweller Nirav Modi from fleeing the country or not returning to face trial. It is likely to be brought before Parliament in the second half of the Budget Session beginning March 5, 2018.

The provisions of the bill will apply for economic offenders who refuse to return. Persons against whom an arrest warrant has been issued for a scheduled offence as well as wilful bank loan defaulters with outstanding over Rs 100 crore.

It provides for confiscating assets even without conviction and paying off lenders by selling off the fugitive's properties. Such economic offenders will be tried under the prevention of money laundering act.

Later addressing the press, Union Finance Minister Arun Jaitley said, "Fugitive Economic Offenders Bill 2018 has been brought to confiscation of assets of a fugitive, including benami assets. There will also be the provision to confiscate those assets outside India but co-operation of that country will be needed."

Briefing media on the decisions of the Union Cabinet, March 1, 2018 https://t.co/wbv491lXcJ — Arun Jaitley (@arunjaitley) March 1, 2018

Union Cabinet decides to set-up a National Financial Reporting Authority (NFRA) today. pic.twitter.com/n6EvLTQUrY — Ministry of Finance (@FinMinIndia) March 1, 2018

He added, "Cabinet has also approved the establishment of National Financial Reporting Authority (NFRA). NFRA will act as an independent regulator for the auditing profession which was one of the key changes brought in by the Companies Act, 2013. Jurisdiction of NFRA for investigation of chartered accountants and their firms under section 132 of the act would extend to listed companies and large unlisted public companies, the thresholds for which shall be provided in the rules."

(With PTI inputs)