The new law is different from the Prevention of Money Laundering Act, which also provides for confiscation of assets of economic offenders, he said.
The government managed to introduce in the Lok Sabha a Bill seeking to amend the Chit Fund Act known as the Fugitive Economic Offenders Bill, 2018 that would enable the government to confiscate the property of those absconding from the law under economic offences.
The proposed fugitive law aims to impound and sell assets of Nirav Modi-type escapees with a view to quickly recover dues.
The law will apply to defaulters who have an outstanding of Rs 100 crore or more and have escaped from the country.
The Bill will help in laying down measures to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts.
The proposed law will have an overriding effect over all other pieces of legislation.
But the middle of the chaos and din in the Lok Sabha.the Fugitive Economic Offenders' Bill was tabled by the government.
Bhartruhari Mahtab of the BJD opposed the introduction of the Fugitive Economic Offenders Bill, saying its provisions violated the citizens' fundamental rights and that it is based on the premise of "guilty till proven innocent" and not the other way round.
"Anyone can be prosecuted or property can be acquired without the person being found guilty".
It may be recalled that the Union Cabinet had earlier this month given its nod for the Bill.
Shiv Pratap Shukla, Minister of State for Finance, introduced the Bill.
It also gives power for confiscation of the property of a offender and proceeds of crime and disentitlement of the person from putting forward or defending any civil claim.
A Bill to streamline and strengthen the chit fund sector was introduced in the Lok Sabha on Monday which mandates video conferencing while the opening of bids and seeks to hike commission of foremen from 5% to 7%.
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