The Cabinet today cleared Fugitive Economic Offenders Bill to target big defaulters.
Corporate Affairs Minister Arun Jaitley said the new bill will apply for economic crime of over Rs 1 billion.
"Courts may declare anyone fugitive if he flees the country to avoid arrest in a scheduled offence where arrest warrant has been issued. All assets, not just proceeds of crime, will be confiscated of an offender fleeing the country and the offender cannot pursue any civil case," said Jaitley.
"Fugitive Economic Offenders Bill 2018 has been brought to confiscation of assets of a fugitive, including Benami assets. There will also be the provision to confiscate those assets outside India but co-operation of that country will be needed," he said.
New and old cases of persons who have fled the country to avoid prosecution will be covered by the new Fugitive Economic Offenders Bill, said Jaitley.
The Cabinet also approved setting up of the National Financial Reporting Authority (NFRA), which will be an independent regulator for the auditing profession.
The decision comes against the backdrop of various auditing lapses in the banking sector, including the Rs 127-billion fraud at Punjab National Bank.
The jurisdiction of the NFRA -- which would be an oversight body for auditors -- would extend to all listed companies as well as large unlisted public companies.
The regulator would have a chairperson and three full-time members. Besides, there would be a secretary.
Jaitley said NFRA would help in improving foreign and domestic investments as well as support globalisation of business by meeting international practices.