Showing urgency in dealing with absconding loan defaulters, the government has come out with series of rules to operationalise the fugitive economic offenders law, for which the president promulg­ated an edict 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 seeks to expedite recovery of losses incurred by ba­nks and other entities by co­n­fiscating their properties.

The fugitive economic offenders law comes in the ba­ckdrop of alleged fraudsters like Nirav Modi running aw­ay from the country after cheating PNB to the tune of about $2 billion.

The notifications regarding rules, issued by the fin­a­n­ce ministry, spell out the pr­ocess for declaration of fu­gitive economic offender, issuance of attachment order, and management of confiscated properties.

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.

Special directors of the enforcement directorate’s re­gional offices will function as administrator of confiscated properties said another notification.

On management of confiscated property, the rules said that the administrator would arrange for the proper maintenance and custody of the immovable properties.

In case, the property confiscated consists of cash, the government or other securities, bullion, jewellery or ot­h­er valuables, the administrator would deposit them for safe custody in the nearest government treasury or a branch of RBI or SBI or any authorised bank.

The ordinance, which got nod of the president on April 21, makes provisions for special court under the Prevention of Money-laundering Act, 2002 to declare a person as a fugitive economic offender.

“A fugitive economic offender is a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or be­ing abroad, refuses to return to India to face criminal pro­s­ecution,” said a finance ministry statement.