Fugitive Bill: Letter to BS on govt getting tough on economic offenders

It is good that the Cabinet has approved the Fugitive Economic Offenders bill and the finance minister will introduce the same in the ensuing session of the Parliament. No doubt, the Bill will arm bankers to attach the properties of alleged fraudsters.  But mere attaching will not serve the purpose. Bankers had attached raw materials, good in process, finished goods, machines, landed properties and buildings in the past and recently precious metals like gold and diamond of Nirav Modi.

But how much of those assets have been sold/auctioned/realised and credited to the loan accounts to reduce the liability? Most of the attached properties are lying locked resulting in deterioration in the value of the assets. In Nirav Modi's case, it is reported that more than Rs 60 billion of precious metal has been seized. Unless this is sold and proceeds credited to the loan account speedily, no purpose will be served. 

B G Rao

Bengaluru