This announcement made during the presentation of the Union Budget will go a long way in dealing with economic offenders. Currently the process of confiscating properties of offenders is cumbersome in nature. There are various procedures that need to be followed before the property of an offender is confiscated.
This move would come as a major relief for agencies such as the Financial Intelligence Unit and the Enforcement Directorate which deals with such cases. In cases such as that concerning Vijay Mallya who has defaulted on loans, the agencies would find it easier to recover the same by confiscating his properties.
Under the current scenario, economic offenders leave the country and escape the law as the extradition procedure is cumbersome in nature.
In most cases when the extradition fails, agencies find it hard to proceed with the probe. Once this new law comes into force, the agencies can now move and confiscate properties and at least recover the amount the absconder owes.