The provisions of the proposed Fugitive Economic Offenders Bill, 2017, once passed by Parliament, will override other legislations dealing with economic offences.
"It is widely felt that the spectre of high-value economic offenders absconding from India to defy the legal process seriously undermines the rule of law in India," the finance ministry said in a statement.
"It is, therefore, felt necessary to provide an effective, expeditious and constitutionally permissible deterrent to ensure that such actions are curbed," it added.
It further proposes that the burden of proof for establishing that an individual is a fugitive economic offender will be on the authorities.
More From This Section
"The confiscation order of the Special Court will, to the extent possible, identify the property that constitutes proceeds of crime which are to be confiscated and in case such properties cannot be identified, quantify the value of the proceeds of crime," it said.
It follows announcement regarding it by Finance Minister Arun Jaitley in his Budget speech on February 1.
Jaitley had said the government was considering introducing legislative changes or even a new law to confiscate the assets of such absconders till they submit to the jurisdiction of the appropriate legal forum.
He had said that in the recent past, there have been instances of big time offenders, including economic offenders, fleeing the country to escape the reach of law.
Mallya, the 61-year-old chief of the erstwhile Kingfisher Airlines who owes over Rs 9,000 crore to various Indian banks, had fled India to escape legal proceedings in connection with the loans.
India is making efforts to get the embattled Indian tycoon extradited from the UK.