During the G20 anti-corruption working group meeting held in India, the country emphasized the importance of multilateral action in ensuring the extradition of fugitive economic offenders and the recovery of stolen assets from abroad. This is particularly significant as India has been working to extradite fugitive economic offenders, such as diamond merchant Nirav Modi and businessman Vijay Mallya, from different countries.
In the inaugural session of the anti-graft meet, Union Minister of State for Personnel Jitendra Singh stated that corrupt individuals find ways to hide their proceeds of crime, which are often used to fund illegal activities, including terror funding, illegal drug trade, human trafficking, arms sales, and more. Singh stressed that it is crucial for the global community to work together to recover these assets, by sharing information between the G20 countries in a proactive manner.
To achieve better coordination, streamline judicial processes, and ensure timely disposal of cases, India believes that multilateral action is necessary, rather than bilateral coordination, which can be more complex and present obstacles in making progress on cases related to fugitive economic offenders and asset recovery.
The issue of fugitive economic offenders has become a pressing concern for many countries, with many such individuals fleeing to different countries to evade prosecution. India has been working to extradite Nirav Modi and Vijay Mallya from the UK, while China has been seeking to bring back economic fugitives from the US and Canada.
Multilateral action is seen as a more effective approach to this issue, as it allows for greater cooperation and coordination among countries. By sharing information and resources, countries can work together to track down fugitives and recover stolen assets, which would be much more difficult to achieve through bilateral coordination.
India’s emphasis on multilateral action is also significant in the context of the ongoing efforts to combat corruption and promote transparency globally. The G20 anti-corruption working group aims to promote international cooperation in fighting corruption and illicit financial flows, and India’s stance is in line with this goal.
In addition to multilateral action, there are other measures that can be taken to address the issue of fugitive economic offenders and asset recovery. These include strengthening domestic laws to deter economic crimes and corruption, improving international cooperation on extradition and asset recovery, and enhancing transparency in financial transactions.
India’s stance on this issue highlights the importance of working together to combat corruption and ensure that those who engage in economic crimes are held accountable for their actions. By promoting multilateral action and cooperation, countries can take a more effective and coordinated approach to this issue, and work towards a more transparent and accountable global financial system.
India’s Enforcement Directorate has transferred assets worth USD 180 billion to public sector banks that were impacted by frauds allegedly committed by high-net-worth individuals. However, the extradition process has been complex and time-consuming, which has caused a delay in the investigation and trial of offences, even after initiating the process of getting information from foreign countries through Letters Rogatory. To tackle this issue, India’s minister has proposed that mechanisms be strengthened for speedy confiscation of the proceeds of crime, both at home and abroad, to force offenders to return to their home country. This will allow for effective investigation and speedy trials, and help banks, other financial institutions, and tax authorities achieve recovery from defaults committed by such offenders.
The minister added that corruption is a complex social, political, and economic challenge that impacts all countries and adversely affects the effective utilization of resources, creates market distortions, and adversely impacts citizens’ quality of life. India’s presidency aims to focus on pragmatic action-oriented steps in addressing the wider implications of corruption, strengthen international cooperation on anti-corruption matters, and deepen the G20 commitment towards countering corrupt actors and corruption.
As the primary forum for global economic cooperation, the G20 has a responsibility to lead global efforts towards battling the menace of corruption. India’s G20 Presidency will focus on providing an effective, efficient, and responsive mechanism on asset recovery and information sharing between the G20 countries. The working group under the co-chairship of Italy will come up with substantial outcomes aimed at preventing and combating corruption.
The minister highlighted India’s initiatives such as the ‘Direct Benefit Transfer’ (DBT) and the Government e-Marketplace (GeM) that have won global accolades. DBT is a logistical marvel that ensures efficiency and transparency and eliminates intermediaries in the delivery of funds to the targeted beneficiaries. GeM is another marquee initiative launched by India to usher in an era of transparency, efficiency, and speed in public procurement.
