The Central government may soon bring in the Fugitive Economic Offenders Bill, which proposes confiscation of assets of those who flee the country to evade prosecution, or refuse to return, in cases involving more than ₹100 crore.

The proposed law assumes significance in view of the reports about major bank frauds in the past fortnight. Accused of complicity in the ₹11,400-crore fraudulent transactions in the Punjab National Bank, diamond merchant Nirav Modi and his family members are currently abroad. The passports of Mr. Modi and his uncle Mehul Choksi have been revoked.

In another case involving ₹389 crore of the Oriental Bank of Commerce, a Delhi-based jewellery exporter and his business partners fled the country in 2014. Under the existing laws, the bank has failed to recover the dues in the past three years.

A draft of the Fugitive Economic Offenders Bill, which is in consonance with similar legislations in several countries, was circulated in May last year seeking comments from all the stakeholders. The Bill was also cleared by the Union Law Ministry with certain recommendations on reconciliation of provisions with the existing laws.

The draft Bill followed an announcement in the Budget 2017-18 that the government planned to introduce a legal measure to facilitate confiscation of assets of the economic offenders who flee to foreign jurisdictions to escape the clutches of law.

The move came after Vijay Mallya, who owed more than ₹9,000 crore to the public sector banks, flew out of the country and refused to come back. It set off prolonged and multi-pronged legal proceedings, with the government still fighting a legal battle for his extradition from the United Kingdom.

The draft Bill defines a fugitive economic offender as any individual against whom an arrest warrant has been issued and who has either left the country or refuses to come back to face prosecution.