Government introduces Fugitive Economic Offenders Ordinance 2018
April 24, 2018A new legislation has been introduced to book high profile offenders who indulge in tax evasion and money laundering. The government through the new Fugitive Economic Offenders Ordinance is looking to fix the loopholes in all the previous legislations.
This ordinance stipulates that no civil claim can be made against such offenders in any Indian court with regard to the confistciation of fugitive economic property. This ordinance gives immense power to Indian government to seize the property of economic offenders if they are absconding from India until such offenders submit themselves to the jurisdiction of the appropriate legal forum.
If the economic offenders want to protect their assets they will have to submit to the Indian jurisdiction. This ordinance also covers under its ambit overseas assets acquired from criminal activity. Prevention of Money Laundering Act (PMLA) is ineffective in the sense that power of confistication is available under PMLA only after conclusion of the trial which is not very useful.
As per the Act, “Fugitive economic offender” means any individual against whom a warrant for arrest in relation to a Scheduled Offence has been issued by any Court in India, who— (i) has left India so as to avoid criminal prosecution; or (ii) being abroad, refuses to return to India to face criminal prosecution.