After the Nirav Modi–PNB fraud worth more than ?12,000 crore, the Union Cabinet had approved the Fugitive Economic Offenders Bill, 2017. The bill aims to prevent economic offenders who leave the country to avoid due process. Offenses involving amounts of ?100 crore or more fall under the purview of this law. Now, what exactly is the fugitive economic offender? These are the people who abscond from India to avoid criminal proceedings or charges faced on them.
The government has highlighted its concern over several countries offering safe havens to economic offenders “through investment based schemes” and why a global action against it is necessary. The issue was aroused by finance minister NirmalaSitharamanat a meeting of G20 finance ministers in Japan. In recent years, the UK has emerged as the leading destination for fugitives like Vijay Mallya, Nirav Modi, although the courts have initiated action against them. The finance minister pointed out how investment based schemes are used to acquire citizenship to escape from legal consequences. Over the years India has taken this issue at G20level to prosecute the offenders at a global level. Over the last year, India has taken up the issue of economic fugitives at G20 level to prosecute the offenders.
Many of the countries have adopted the automatic exchange of financial account information (AEOI) to identify the offenders. Sitharaman also highlighted the tax challenges that have arisen due to the digitization of the economy.
Tags : #EconomicOffenders #EconomicFugitives #FugitiveEconomicOffendersBill #India