To avoid such huge order scams in future course of time like the recent PNB scam totaling over Rs. 12000 crore, Cabinet on Thursday gave a go-ahead to Fugitive Economic Offenders Bill, 2017. As soon as the bill get converted into the law by both the upper and the lower house of the parliament, the agencies involved in the investigation will be better empowered to deal with defaulting individuals or corporate.
Some important points regarding the bill you should know
1. The bill has come in scene in the backdrop of PNB like scams and is aimed at protecting the lenders' interest which are left with no rescue in case the corporate defaulters resort to absconding. The bill shall be tabled in the second session of the budget that commences from March 6, 2018.
2. The definition of the Fugitive economic offender as per the bill is any person in whose name an arrest warrant has been issued in respect of an offence and who has escaped out of India to avoid confronting any legal prosecution against him.
3. The scope of the bill covers several of the frauds including the likes of non-repayment of deposits, willful default, forgery, fraudulent or forged document of electronic records and other such similar cases of fraud.
4. After the bill takes the shape of a law, the investigating with the resolution shall be better empowered to confiscate any of the properties of the fugitive offenders without many hindrances.
5. Also, the bill will take away the rights of the fugitive offender to reclaim the asses as he shall be barred from defending any claim.
6. Only cases with fraud of over Rs. 100 crore shall come within the scope of this bill and a Special court under the Prevention of Money Laundering Act (PMLA) will be required to declare a person fugitive economic offender".