Govt may soon be able to seize assets of economic offenders who flee India

The law ministry has given its concurrence to a draft bill that will give powers to the government to confiscate property of economic offenders and defaulters who flee India, albeit with a new provision, official sources said.

It wants a "Saving Clause" to be incorporated in the Fugitive Economic Offenders Bill 2017 before it is introduced in the Lok Sabha in the ensuing winter session of Parliament, they said.

A saving clause provides for certain exception(s) in a statute. It enables the repealed law to be in force with respect to some existing rights.

The proposed law will be applicable in cases where the value of offences is over Rs 100 crore.

The bill flows from Finance Minister Arun Jaitley's 2017 -18 Budget speech promising legislative changes or even a new law to confiscate the assets of such fugitives. It seeks to deter economic offenders from evading the process of Indian law by fleeing the country.

The bill proposes to allow the Financial Intelligence Unit (FIU), the premier technical snoop wing under the finance ministry, to file an application for the declaration of fugitive economic offender for confiscation of their assets.

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