Fugitive Economic Offenders Ordinance Demystified — Policy & Politics

Fugitive Economic Offenders Ordinance Demystified — Policy & Politics



hello and welcome to policy and politics with me Tarun Anya today we will discuss and know about the fugitive economic offenders ordinance and how did it lead to Vijay Mallya pleading to settle 9,000 crore of outstanding loans we have with us Gopala garwal his spokesperson economic affairs party Ajanta party he's also the director of Bank of Baroda he will discuss the issue with us in detail mr. Ogawa before starting as you also being a chartered accountant at the right person to discuss the issue with I think what is the fugitive economic offenders ordinance in a nutshell it is because when the government was trying to solve the NPA issues various aspects came before the government one was some of the offenders who were not paying to the bank or other way of not meeting their liabilities but running are all from the country and for that the jurisdiction of Indian government was not there with regard to those persons if they go out of the country to get their recover money from that some bill strong measure was required so that come they come to the negotiation table and their property if those exist in India even if they are not available in for the criminal proceedings etc within the country their properties can be attached and the money can be recovered therefore a need was felt as the that the government come out with a strong legislation so that the properties of those who have run away from the country and have large liabilities tore domestic financial institutions they the money can be recovered from that those people and therefore this ordinance or this bill fugitive economic offenders bill has been installed by the government so basically in a nutshell if I can say that Modi has brought this bill to ensure that nobody should even if people run away from the country we can catch them and get their the money that they owe to people yes because once a person goes out of the nation the the jurisdiction of the local investigation agencies or recovery systems in the country or the government to recover money from that person is not there so that the best way is to confiscate their property and come bring them to the negotiation table so that the money can be recovered and therefore this has been brought into existence so basically if I speak in Hindi it my second octave occupation Akali up Laguna logo k bill ultimately cottages Abuja Molokai deathly JK some later the no Joker or key liability T or jihad except attached are a key word that is the first example case in which the government is able to act on this is that his assets are to the tune of more than 13,500 Carosa in various proceeds of the crimes and various assets that belongs to him the owns a property toka confiscate car K Yahoo Co Co Co offender declare car key was Co recovered Carnegie procedure quagga Veronica – I will processor I would want to know who is a fugitive economic offender if we go by the ordinance who is actually the ordinance defines the who is fugitive economic event offender one thing is his liability towards various economic offense should be more than 100 crores and second he should have run away from the country these are the two basic requirement that the value of money to be recovered and under his position through the proceeds of the crime should be more than 100 like Carosa 100 crores and secondly is that he has refused to come to the country and to face the trial or face the consequences or face the legal proceeding domestically and he is run away from the top basically 900 corrode of default and then he runs away from the country that said this new ordinance will kick in basically that this he can be declared as a fugitive economic often offender under this ordinance okay okay and if you could share with us how is a person declared an offender what is the procedure to declare a person it's a well laid out procedure under the ordinance is that that he he has to there are various procedures that he is offender hunting is a property the director of this bill has ordinances to file a due to the case to the special court that with identifying the person whom this case is against then a list of properties those are belonging to that offender secondly what are the crimes that the list of the crimes under which he has been chargesheeted and third well then the fourth requirement is because that person director from in the special code has also to file the list of persons who may have interest in those properties the four basic requirement is there identify the person whom they want to declare as an economic offender fugitive economic offender his address etc details are to be clearly filed with the special court second his current list of crimes where they consider that his offenses under which shedule what are the offenses they want to recover money on the basis of those offenses third thing is they have to give or list all his properties that they want to conciliate and attach under the ordinance and the for this list of other persons or those who may have some interest in that property which the government want to attach for recovery of money these four things are required and once these things are filed with the special code that the special court can proceed with the this declaring of a person as if you go to economical okay and if if we want to know what are the proceeds of crime so when you say that he's committed a criminal act and he ran away what are these proceeds of crime under the ordinance bill can does she do like the hour this mypod sorry white-collar crimes he lists a child's Makai Tariq a child crime under severe crime under Banking Act Wow economic offense KC bataki escape criminal act mo she duels we're both sorry offences a disco Kamla stout Cassatt a kid they are under the offenses of offences under the Prevention of Corruption Act offenses under custom Act offenses for the Reserve Bank of India act kandar a negotiable instrument act can the Orpheus kibbutz Sebek endure it may be money laundering PMLA candor Easter academic offenses hands k1 Ciccone Taraka crimes candor for shedule candor hoosegow wouldn't act kandar was the high crime TI and from that proceeds of the crime he has acquired some assets etc those all those assets acquired through the proceeds of the crime will come under the proceeds of the crime and those properties at sector whatever assets have been acquired by the fugitive of winter they all can be attached under this ordinance for recovery okay okay now we are all very curious to know that why did the Modi government bring it as an ordinance and not a bill which was to be passed in parliament equally one thing is this was placed before the Parliament but as the opposition etc there was a hue and cry on various issues and the Parliament could not function properly so therefore there was no time for this bill to be discussed or fast like the floor of the house and the parliament session ended there and the government was keen to get the money back from there were some new new cases coming up who were running out from the country and their money had to be recovered or their properties had to be confiscated – the government thought that it is wise initially to bring an ordnance till the next session of Parliament when the next session of Parliament convenes from 18th July I think the government will put it as a bill and it will be passed till that this ordinance was required because a fast action has to be taken in all these white-collar crimes or economic offences it is important that the government acts fast otherwise there can be diversion or transfer of properties that is also divergent and transfer of properties is a big issue in a provisional attachment is also required because this bill gives a very strong power to the government to even provisionally attach the properties of the proposed offender so that's an important aspect that gives an extra power to the government to provisionally attach those properties even before the whole process is completed so that there is no divergence or so that the property is not siphoned off in other places so basically you think Modi government has given a indication keep business as usual nature Liga after Leucippus are like a mahogany system basically you cannot take money from the banks and run away and a lot of businessmen had made it a habit that to take loans not repay so this culture will change definitely here both Sarita Karan Kurata Kido economic offences young and picogram decay GenBank okay pass a gorman que pasol Oh Blake a good code Awad card edit a project men say a large okapi – off card ETA though Ausmus Chabad whoa job ultimately dub strongarm government connections kikuchi shiho TTT odessa Baljit 808 oh yeah buddy of a Shattuck strong law fill up International Corp entire repetition CLE application Dalia Whitnall Amba processes may multikill National Chi countries in Volterra but not slow process our effective process needed a domestically X strong criminal acted bilqis charity deceased Erica offenses met Odette Renzo or a Gurkha karthik raja tap a silicon Sarkar kiya America taxpayers money to scope a strong action Lea's or we see line Makita rocket changes belie tribe enemy property AK circle aka insolvency bankruptcy code light ultimately Prevention of Corruption Act casa andina be par so cocky when this oughta see my bonnet MRI Prevention of Corruption Act was proposed sorry gaped a horseman sir car capacity strongarm power night edges kept terrible action LASIK a toe asterick is strong power bills or strong powers sir car co avishay Totti – job enemy property IBC or figurative economic offender ordinance Easter Egg a bill say up why be corporate house generous sir care institutions cafes a lake a as a nice a bug this that's a moot point curious to know that there was a Bonomi property act which was already in existence then why did the government feel the need for this strong law to bring in the fugitive economic offenders ordinance basically Benham a property act was a kind of recovery mechanism and it is applicable on domestic people those who are residing inside the country and there they are citizen though they are citizen but still are available for the investigation agency domestically and those who run away from the country for them Benna me Property Act was not applicable for them to confiscate properties of those people who are absconding from the nation that this bill was so this provisional attachment power was not there yes in benami property it is the more of a recovery sort of thing because already the recovery has been fixed and then they have their property within different names in their family names or in their relatives them those kind of properties are covered under venom a property it is more of a recovery sort of this this gives a proper this gives a more empowers the government to confiscate provisional even provisional properties of those who are absconding from okay on this note we'll take a short break after the break we will discuss what are the concerns of industry at large because there have been some noises from the industry or that this law is very strict or draconian but will like to know more from mr. Gopal Agarwal we will take a short break and we'll be right back welcome back just before the break we had mr. Gopal occur while explaining to us the specifics of the fugitive of economic offenders ordinance and how even the properties of offenders can be provisionally attached we know from him regarding the industry concerns now mr. Agarwal there have been a lot of concerns from the industry could you give us a round up on what do you think are the concerns and how they can be addressed there is some concerns on the industrial part of it and they say that it is a very strong bill and it says that once a person gets into the net of by any by accord any reason or any situation once he gets into this net of figurative economic offenders ordinance then there is no way out so that's concerned I think he government has taken cognizance of that in the bill only and the procedure in itself gives the detailed rules on which how the government can proceed under this act ethos weymouth boombastic a guru vaak Abhijit who spoke noticed a night for six weeks notice anybody the government thinks that he should be declared as an economic fugitive economic offender FeO then the government has to give us six weeks notice to him within that six week if he comes to the country and he surrenders before the investigation agencies or to the court etcetera with all the details that I am ready to be part of the investigation domestically I am ready to settle the claims etcetera then this ordinance come will completely lapse of being implicated on him so there is an ample chance for each individual that if he comes back to the country and surrenders himself for to the legal process domestically then he is out of the purview of this ordinance second thing is that there is second concern big concern of the industry etcetera is that he loses once a person is declared an FeO if you go to economic offender he looses all rights of claims against or any thing in the domestically though that also government has in case in point is that once you have yourself had run out of the nation you have become an ex Condor why do you want why do you want the civil rights within the domestically available to ordinary citizens you want the rights of the civil claim etcetera domestically but you don't want to put the responsibility of repayment of the loan repayment of your liabilities repayment of your proceeds of the crime confiscation of those products so both things cannot happen if you are not part of the legal process domestically you yourself has chosen yourself perhaps confirm the nation and run away from the clutches of the investigation agency or the recovery mechanism then how you still want to claim your civil rights to a various aspect though that is also doesn't stand a whole the logic and if he wants his claims etc to be restored he can come back then he's a he will not be he will be relieved on this that the third important is that what happens to the procedure claims of the third part the government has confiscated the properties of the various economic offender economic a fugitive konami offenders and they are they can confiscate them and put it under the administrator what happens to the third party clay will other people who have to receive yes thought happens to him will the government attaches the assets yes there are some claims on those assets by for the third parties also other than the person who is free to those claims are also an important issue some have shown concern that their rights etc will go away it is not the case because the Garbett in the ordinance it clearly says that section four gives a list of people whose interest is there in the property so their claim will stand the though they have to even if though some people who are left out of filing any claim or out of the list of the people who have an interest in that got that they can still file their claim with the administrator and their that this unsecured creditors all all their claims will be taken care ok we want to know suppose one industrialist gets caught in this net and all his properties are attached by the government how can he get out of it he can for one thing is that there is a six weeks notice for him within that six week he comes back to the country then this ordinance will automatically lapse it is not applicable on him so that is the only process but once the process starts then the this is a criminal offence and unless he is proved innocent through the whole process so you mean young these six weeks if he pays the money back he comes back to come it is not that within the six week he has to pay back he has to come back to the country to surrender himself to the legal processes then he is out of the preview of this economic offenders bill and one concern also I think there is some justification in that that in in this pre this the proof of offense under generally in the criminal cases the proof to prove it beyond all doubt Venice this beyond all reasonable doubt crime has to be proved under the criminal procedures through the investigation or agencies but in this they have given relaxation that the ETA it is not that strong stringent requirement that the investigation agencies of government have to prove crime beyond all doubts there is some concern on that but I think if these concerns will be taken care of within the rules and regulations which are are being framed for implementation of this but once if somebody's property is confiscated can that person file a civil claim no he cannot because he loses that right to claim his civil rights on those property because he is in himself chosen to abscond from the clutches of the law or domestic laws so then he loses the right you cannot seriously he himself cannot but the third party's right is there they can't believe me cannot see he loses the right to file any civil but if I take this further what are the consequences of being declared a fugitive economic offender what are the overall consequences so if you are declared first your property is a child then what happens then the administrator who is appointed by the government all the properties unencumbered properties rights will lie with the administrator then he can proceed with the liquidation or whatever how to dispose of and how to recover all rights and powers with regard to this proceeds of the crime property lies with the administrator and it's also important one major concern is taken care of of the industries that the confiscation of the property only those property or value occur equivalent value will be taken into consideration only which are arising from the proceeds of the crime other escape proceeds of crime Kalevala gen will equal property acquired Kia can you say the word yes cannot attach Naoki so the investigation of agencies or directors or especially through the special quote government agencies will have to prove that this property is acquired by the offender through the proceeds of the crime and there is a criminal acting equivalent to and that the value similar to that only will be confusing these other funds and money which you acquired from other businesses with legal businesses or through legal means will not be confiscated okay so if you see the Modi government has brought in two things first they brought in the insolvency and bankruptcy code so there was an insolvency mechanism where companies could be auctioned off if the promoters did not pay the loans so they could change the management and now they are attaching the properties itself if people run away so do you think now the whole circle is now complete that first you you had an option that promoters could sell up their companies but if they are fraud the fugitive economic offenders ordinance will take care of that so you think

Leave a Reply

Your email address will not be published. Required fields are marked *