FUGITIVE ECONOMIC OFFENDERS - ECONOMY
News:
● India
called upon G20 countries to adopt
multilateral action for faster extradition of fugitive economic offenders
and recovery of assets, both domestically and abroad.
Fugitive Economic Offender:
● The
term ‘fugitive economic offender’ [FEO] is defined as ‘an individual against whom a warrant of arrest in relation to
scheduled offense has been issued by any court in India and who has left the
country to avoid criminal prosecution; or the FEO abroad refuses to return to
face criminal prosecution’.
Fugitive Economic Offenders Act, 2018 - Provisions:
● It
seeks to confiscate properties of economic offenders who have left the country
to avoid facing criminal prosecution or refuse to return to the country to face
prosecution.
● Fugitive
Economic Offender (FEO): A person against whom an arrest warrant has been
issued for committing an offense listed in the Act and the value of the offense
is at least Rs. 100crore.
● Some
of the offenses listed in the act are:
○ Counterfeiting
government stamps or currency.
○ Cheque
dishonor.
○ Money
laundering.
○ Transactions
defrauding creditors.
● After
hearing the application, a special court
(designated under the PMLA, 2002) may declare an individual as a fugitive
economic offender.
● It
may confiscate properties which are
proceeds of crime, Benami properties and any other property, in India or
abroad.
● Upon
confiscation, all rights and titles of the property will vest in the central
government, free from encumbrances (such as any charges on the property).
● The
central government may appoint an administrator to manage and dispose of these
properties.
● The
Enforcement Directorate (ED) is
responsible for investigating offenses under the Fugitive Economic Offenders
Act, 2018.