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Parliament passes economic offenders bill to pull the plug on likes of Vijay Mallya, Nirav Modi
The Parliament on Wednesday passed a bill that seeks to prevent big economic offenders such as Vijay Mallya and Nirav Modi from fleeing the country and evading the legal process. The Fugitive Economic Offenders Bill, 2018 was passed by the Rajya Sabha with a voice vote today.
The Parliament on Wednesday passed a Bill that empowers authorities to attach and confiscate assets of fugitive economic offenders and aims to deter them from fleeing the country in an attempt to evade prosecution.
The Fugitive Economic Offenders Bill, 2018, was passed by a voice vote in the Rajya Sabha. The Lok Sabha had cleared this bill on July 19. The bill replaces the Fugitive Economic Offenders’ Ordinance that was promulgated in April to initiate seizure of assets of jewellers Nirav Modi and his uncle Mehul Choksi, who fled the country after being named as accused in the ₹13,000 crore-Punjab National Bank (PNB) fraud.
The bill allows for a person to be declared a fugitive economic offender if an arrest warrant is issued against him/her for any specified offence involving over ₹100 crore and the accused leaves the country and refuses to return to face prosecution.
Speaking during a four-hour-long debate on the bill, finance minister Piyush Goyal said that instances of people fleeing and evading the legal process were increasing as the current laws do not allow authorities to fully deal with the severity of the problem and that this needed to stop.
“This bill is an effective, expeditious and constitutional way to stop these offenders from running away. Legislative changes or a new law must be in place to confiscate the assets of such absconders till they don’t present themselves before the courts. We will also work out what has to be done with the confiscated assets,” Goyal said. The government is also making efforts to get those on the run extradited, he said.
Replying to opposition charges that the government has failed to bring back black money, Goyal said, “We are fighting against black money and forcing offenders to face the legal process.”
The finance minister also justified the financial limit of ₹100 crore for invoking the provisions of this new law. “It is being done to catch the big offenders and not to clog the courts.” he said adding the Enforcement Directorate (ED) will be the apex investigative agency under the Act.
During the debate, opposition members attacked the government alleging a lack of will on the government’s part. Criticising the government, Congress’ Vivek K Tankha said there was “no shortage of laws in India. But they get away because the government does not have the will to stop wilful defaulters.”
“People like Lalit Modi, Vijay Mallya, Mehul Choksi and Nirav Modi were involved in economic offences worth ₹2.4 lakh crore... law is too little and too late as all big fishes are outside the country. Are we a country that make too many laws with little implementation,” Tankha asked.
Samajwadi Party’s Neeraj Shekhar said that though he supports the bill, he is apprehensive about its implementation. Meanwhile, AIADMK’s A Navaneethakrishnan asked the government to add provisions to increase quantum of punishments and fines.
