PRESIDENT RAM NATH KOVIND’S CONSENT TO THE FUGITIVE ECONOMIC OFFENDERS ORDINANCE

President Ram Nath Kovind last night gave nod to Fugitive Economic Offenders Ordinance that will allow the government to confiscate properties and assets of loan defaulters who flee the country. The president signed the Ordinance within hours of it being cleared by the Union Cabinet headed by Prime Minister Narendra Modi. The Fugitive Economic Offenders Bill was introduced in the Lok Sabha on March 12, but could not be taken up for discussion and passage due to the logjam in parliament over various issues. The ordinance seeks to confiscate properties of economic offenders like diamond merchant Nirav Modi, who have left the country to avoid facing criminal prosecution.The provisions of the ordinance will apply for economic offenders who refuse to return, persons against whom an arrest warrant has been issued for a scheduled offence as well as willful bank loan defaulters with outstanding of over Rs. 100 crore. It provides for confiscating assets even without a conviction and paying off lenders by selling off the fugitive's properties.Such economic offenders will be tried under Prevention of Money Laundering Act (PMLA).