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Drumbeat: Ad Buzzaar
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Wednesday, August 5, 1998
Fera's new avatar
The government's tabling of the Foreign Exchange Management Bill in Parliament is to be welcomed, but the joy will be tempered by the realisation that the government is reintroducing the draconian provisions of Fera in a new incarnation, the Money Laundering Prevention Bill. There is no doubt that we need stringent laws against money laundering, in particular against laundering drug money. But this does not mean that enforcement authorities should be given special powers for enforcing the provisions of the law. The argument against several of the bills provisions has been succinctly stated by Ficci president KK Modi. He says the offences proposed to be covered by several of the provisions already attract penalties under various laws. What then is the need for bringing them under the ambit of the new bill?The trouble is the government seems to think that equipping policemen with special powers is all that is needed to stamp out money laundering. This is in stark contrast to the opinion of most ordinarypeople about the police. Given this perception about the police, arming them with wider powers would only result in scope for further harassment. The corporate sector too has had its share of problems while dealing with ham-handed officials, who have little knowledge about the complexities of business. Small wonder that industry associations have protested against these provisions. There is no doubt that money launderers must get their just deserts, provided, of course, they are found guilty by a court of law. But why is the government so eager to harass people only on suspicion of guilt? And why is it so eager to treat oversight as heinous crime? The money-laundering bill is a product of bureaucratic hubris, and it needs extensive amendments before it becomes law. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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