Lok Sabha Question No. 142 (STARRED), answered on 2017-03-10
Subject: Confiscation of Assets
Ministry: FINANCE
Asked by: PANKAJ CHOWDHARY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA STARRED QUESTION NO. *142

## TO BE ANSWERED ON FRIDAY, THE 10 TH  MARCH, 2017 PHALGUNA 19,  1938 (SAKA)

## Confiscation of Assets

## 142. SHRI PANKAJ CHAUDHARY:

Will the Minister of FINANCE be pleased to state:

- (a) Whether  the  Government  is  formulating  or  proposes  to  formulate  any  law  to prevent big time offenders including economic offenders fleeing the country to escape the reach of law and if so, the details thereof;
- (b)  whether  the  Government  also  proposes  to  confiscate  the  assets  of  such  persons located within the country and in foreign countries, if so, the details thereof; and
- (c)  whether  the  Government  has  taken  cognizance  of  the  observation  made  by  the Supreme Court in this regard and if so, the reaction of the Government thereto?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARUN JAITLEY)

- (a) to (c) :   A statement is laid on the Table of the House.

## Statement referred to in parts (a) to (c) of the Lok Sabha Starred Question No. 142 for  answer  on  10-03-2017  regarding    'Confiscation  of  Assets'  by  Shri  Pankaj Chaudhary

- (a) The Government has made the following budget announcement in the Budget speech of 2017-18:

'In  the  recent  past,  there  have  been  instances  of  big  time  offenders,  including economic  offenders,  fleeing  the  country  to  escape  the  reach  of  law.  We  have  to ensure  that  the  law  is  allowed  to  take  its  own  course.  Government  is  therefore considering introduction of legislative changes, or even a new law, to confiscate the assets of such persons located within the country, till they submit to the jurisdiction of the  appropriate  legal  forum.  Needless  to  say  that  all  necessary  constitutional safeguards will be followed in such cases.'

These  legal  issues  are  being  examined  to  initiate  further  action in  terms  of formulating legislative amendments in the existing law or to formulate a new Law.

- (b) Appropriate  action  against  economic  offenders  is  an  ongoing  process  and  the Government from time to time formulates / makes new provisions in the law to prevent commission  /  recurrence  of  such  offences  and  to  apprehend  offenders.  Following amendments have been made in the past three years in the relevant laws to this effect:-

## (1) . Foreign Exchange Management Act, 1999 (FEMA):

(i) Amendments in  FEMA  have  been  made  through  section  2(gg),  13  A  & 37A  empowering  the  Authorized  Officer  to  seize  value  equivalent,  situated within India, of such foreign exchange, foreign security or immovable property situated outside India for its ultimate confiscation under section 13(1A).

(ii) Section 14A(1) and 14A(2) have been inserted in FEMA, 1999 in the year 2016 empowering Enforcement Directorate to recover arrears of penalty at par with Income Tax Act, 1961.

## (2) . Prevention of Money Laundering Act, 2002 (PMLA):

- (i) Where property/ proceeds of crime is taken or held outside the country, Section  2(1)(u)  of  PMLA  has  been  amended  through  the  Finance  Act,  2015 enabling attachment and confiscation of property equivalent in value held within the country.

(ii) The  offence  of  willful  attempt  to  evade  any  tax,  penalty  or  interest  in relation to undisclosed foreign income and assets [referred to in section 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax  Act,  2015]  has  been  made  a  Scheduled  Offence  under  Prevention  of Money-laundering Act, 2002 (PMLA).

- (3). Black Money (Undisclosed Foreign Income and Assets) and Imposition  of  Tax  Act,  2015: This  Act  has  been  recently  enacted  to  effectively tackle the issue of black money stashed abroad.  The new law provides for separate taxation besides penalties of undisclosed foreign income and assets.
- (c) Question is not specific, as to which observations of Hon'ble Supreme Court has been referred to.