President Ram Nath Kovind on April 22, 2018 gave his assent to promulgation of the Fugitive Economic Offenders Ordinance, 2018, giving authorities powers to attach and confiscate the proceeds of crime and properties of economic offenders like bank fraudsters or loan defaulters fleeing the country.
Purpose
The Fugitive Economic Offenders Ordinance, 2018 is aimed at deterring economic offenders from evading the process of law by remaining outside the jurisdiction of Indian courts. The law is aimed at quickly recovering losses to exchequer or public sector banks in cases of frauds like the alleged USD 2 billion fraud by fugitive jeweller Nirav Modi. The absence of such offenders from Indian courts hampers investigation and wastes court time and undermines the rule of law. The existing civil and criminal provisions in law are not entirely adequate to deal with the severity of the problem.
Why Ordinance
The Fugitive Economic Offenders Bill, 2018, was introduced in the Lok Sabha on March 12 but couldn't be taken up due to logjam in Parliament over different issues. With Parliament being adjourned sine die, an ordinance was proposed. The Union Cabinet on April 21 approved the ordinance and the President gave his assent on April 22 to promulgation of the same.
Who is Fugitive Economic Offender
A Fugitive Economic Offender is a person 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 returns to India to face criminal prosecution. The Ordinance makes provisions for Special Court under the Prevention of Money-laundering Act, 2002 to declare a person as a Fugitive Economic Offender.
