Ahead of crucial state elections and even more important national election, the Union Cabinet on Thursday approved the Fugitive Economic Offenders Bill, 2017.
The bill seeks to protect the interest of lenders left high and dry by absconding corporate defaulters.
new legislation is aimed at empowering the investigating agencies
to confiscate, and vest with themselves, any property of the absconding offenders without encumbrances.
The Bill is most likely to be tabled in Parliament in the second the part of the Budget session that starts March 6.
This comes amid the crisis caused by multi-crore PNB scam when the two businessmen Nirav Modi and Mehul Chowksi are absconding.
The government is of the view that it should get the bill passed into law easily.
The Bill’s provision is compatible with the provisions of United Nations Convention against Corruption (ratified by India in 2011) that recommends non-conviction-based asset confiscation for corruption-related cases.
The Fugitive Economic Offenders Bill is aimed at allowing quicker attachment and disposal of property and assets helping recovery of defrauded or defaulted amount.