ED preparing list of fugitives for action

NEW DELHI: The Enforcement Directorate, in coordination with its sister agencies, is preparing a list of all the accused persons against whom action can be initiated under the recently-approved Fugitive Economic Offenders Ordinance.

The ordinance empowers the ED to confiscate domestic and overseas assets of the offenders who are declared fugitives by the designated court. The government is framing the rules for an effective implementation.

Section 15(3) of the Ordinance provides that the government, or an administrator appointed to manage the confiscated assets, can dispose of the properties. However, it cannot be done for a period of 90 days from the date of declaring the offender a fugitive.

The law is applicable to all previous cases involving at least ₹100 crore, which include those against Vijay Mallya, Nirav Modi and his uncle Mehul Choksi. The probe agencies believe that action under the ordinance can be initiated only on the basis of charge sheets filed against the fugitives.

While charge sheets have already been filed against Mr. Mallya, the agencies are yet to submit such reports against Mr. Nirav Modi and his uncle in the court. The 11 cases registered by the Central Bureau of Investigation against Jatin Mehta’s Winsome Diamonds, involving bank loans to the tune of over ₹4,625 crore, are also under scrutiny.

Based on the special court’s directive, as provided in the ordinance, the government can seek assistance from the contracting countries or designated courts of the respective foreign jurisdictions, for confiscating properties of the fugitives.

The provision can be invoked in the cases against Mr. Mallya, Mr. Nirav Modi, Mr. Choksi and other such accused persons who have set up businesses and created assets overseas, according to the investigating agencies.