Fugitive Economic Offenders and Assets
Source : PIB
GS II : Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests GS III : Money-laundering and its prevention

Why in News ?

Recently India called for a strong and aligned international cooperation on a serious emerging challenge of Fugitive Economic Offenders and Assets which flee across national jurisdictions.

• While addressing the United Nations General Assembly (UNGA) Special Session on Challenges and Measures to fight Corruption.

Key Facts

• Need the return of persons and assets sought for such offences, consistent with international obligations and domestic legal systems.
• The accused take shelter in foreign countries and conceal the proceeds of crime in complex legal structures spread over different countries and jurisdictions
• The gaps and weaknesses of international cooperation in this area are fully exploited by such fugitives to their advantage.
• Further strengthen UN Convention against Corruption (UNCAC) adopted by the General Assembly through resolution 58/4 in 2003.

India’s Fugitive Economic Offenders Act 2018 law

• The Bill allows for a person to be declared as a fugitive economic offender (FEO)
• What are the conditions for declaring a fugitive offender ?
  1. An arrest warrant has been issued against him for any specified offences where the value involved is over Rs 100 crore
  2. He has left the country and refuses to return to face prosecution.
• Procedure for declaration
  1. Application will be filed in a Special Court (designated under the Prevention of Money-Laundering Act, 2002) containing details of the properties to be confiscated, and any information about the person’s whereabouts.
  2. The Special Court will require the person to appear at a specified place at least six weeks from issue of notice.
  3. Proceedings will be terminated if the person appears.
  4. Bill allows authorities to provisionally attach properties of an accused, while the application is pending before the Special Court.
• What happen for an FEO ?
  • Properties of a person may be confiscated and vested in the central government, free of encumbrances (rights and claims in the property).
  • The FEO or any company associated with him may be barred from filing or defending civil claims.

Corruption issues and laws in order to tackle Corruptions

Ministry of External Affairs stated that over 30 businessmen, under investigation by the CBI and the Enforcement Directorate had absconded to avoid facing prosecution before Indian courts.

Law against corruptions

1. Prevention of Money-Laundering Act (PMLA)
2. Benami Properties Transactions Act, 1988
3. Companies Act, 2013 which punishes fraud and unlawful acceptance of deposits
4. Indian Penal Code, 1860 and the Code of Criminal Procedure, 1973

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