Union Cabinet on Thursday gave a green nod to the proposed law that would enable the government to confiscate properties of fugitives involved in economic offences amounting more than Rs 100 crore.
Union Finance Minister Arun Jaitley said, “The law will be applicable where the offences involve more than Rs 100 crore.”
The Cabinet was chaired by Prime Minister Narendra Modi, which approved the loan.
According the bill, economic offenders will be treated as criminals.
The provisions of the bill will apply for economic offenders like Nirav Modi, Vijay Mallya against whom arrest warrant has been issued and are refusing to return to India after defaulting with their loans above Rs 100 crore.
The propose bill defines 'fugitive economic offenders' as any individual or person against whom a warrant for arrest has been issued in connection to an economic offence and the person has left the country and refuses to return to India to face criminal prosecution.
Finance Minister Arun Jaitley said, "A new national financing reporting authority would be set up to deal with such cases."
The bill gives the government right to seize property of economic offenders who have fled India.
The bill covers economic offences including cheating and forgery, wilfl default, forged document of electronic records, duty evasion and non-repayment of deposits.
He added that under the proposed law the accused will be given a chance to state their case in the high court.
The proposed law has been brought to fall heavily on economic offenders like Lalit Modi, Vijay Mallya, Nirav Modi who fled the country after defaulting on loans amounting in crores.
The government after their flee from the the country is facing tough time to recover the money from the offenders.