With the government keen to showcase its urgency to sternly dealing with absconding loan defaulters, it has come out with series of rules to operationalize the fugitive Economic Offenders’ Law.
It need be mentioned that an ordinance was promulgated by the President last week.
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 allows expeditious recovery of losses incurred by banks and other entities by confiscating their properties.
The law was in the backdrop of alleged fraudsters like Nirav Modi running away from the country.
That scam alone caused massive 2 billion USD loss to the Punjab National Bank.
As per one of the notifications, only officers of the rank of Assistant Directors or above in the Enforcement Directorate could exercise the power to search and seize record/property which may be useful for proceedings under the fugitive law.
The government expects the new law will help the banks and other financial institutions to achieve higher recovery from financial defaults committed by fugitive economic offenders, improving the financial health of such institutions.>