Page 34 - BF Cover February 2019
P. 34

ARTICLE







         FUGITIVE





         ECONOMIC






         OFFENDERS






         ACT, 2018










         Background :                                         a) it hampers investigation in criminal cases;
                                                              b) it wastes precious time of courts of law,
         In recent past years, all print, television and social media
                                                              c)  it undermines the rule of law in India,
         platforms were covered prominently  with news of economic
                                                              d) most such cases of economic offences involve non-
         offenders fleeing the jurisdiction of Indian courts, anticipating  repayment of huge bank loan default amounts thereby
         the initiation, or during the pendency, of criminal  worsening the financial health of the banking sector in India.
         proceedings against them. After number of financial frauds,  In order to address the said problem, it was felt necessary
         especially Rs. 9,000 crores by liquor baron Vijay Mallya and  to lay down new effective and expeditious measures to deter
         Rs 13,000 crore by diamantine Nirav Modi and Mehul Choksi,  economic offenders from evading the process of Indian law
         who fled the country, it became apparent that the existing  by remaining outside the jurisdiction of Indian courts.
         civil and criminal provisions are not entirely adequate to deal  Therefore, it was proposed to enact legislation, namely, the
         with the severity of the problem.
                                                              Fugitive Economic Offenders Act, 2018 to ensure that
                                                              fugitive economic offenders return to India to face the action
         The absence of such offenders from Indian courts has  in accordance with law.
         several deleterious consequences:
                                                              Commencement:
                        About the author                      The Fugitive Economic Offenders Ordinance 2018 was
                                                              promulgated by President of India on 21st April, 2018. Later
                         Shyam Kagwar                         on, the Fugitive Economic Offenders Bill, 2018 was passed
                       Chief Manager (Research)               in Lok Sabha and Rajya Sabha on 19th July, 2018 and 25th
                   State Bank Institute of Credit & Risk      July, 2018 respectively. Lastly, with the assent of President
                   Management (SBICRM), Gurugram              on 31st July, 2018, the Fugitive Economic Offenders Act,
                                                              2018 has been enacted and come into force.


            34 | 2019 | FEBRUARY                                                           | BANKING FINANCE
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