Highlights of Fugitive Economic Offenders Act, 2018

Who is Fugitive Economic Offender? [Sec 2(f)]

Fugitive Economic Offender means any individual against whom a warrant for arrest in relation to Scheduled Offence has been issued by any Court in India, who –

i)  Has left India so as to avoid criminal prosecution or

ii) Being abroad, refuses to return to India to face criminal prosecution.

What is Scheduled Offence? [Sec 2(m)]

Scheduled Offence means an offence specified in Schedule, if the total value involved in such offence or offences is Rs 100 crore or more.

What is Proceeds of Crime? [Sec 2(k)]

Proceeds of Crime means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to Scheduled Offence, or the value of any such property, or where such property is taken or held outside the country, then the property equivalent in value held within the country or abroad.

Attachment of Property [Sec 5]

The Director or any other officer not below the rank of Deputy Director, authorised by the Director, may, by an order in writing, at any time prior to filing of the application for declaration of fugitive economic offender, attach any property-

   a) For which there is a reason to believe that the property is a proceeds of crime, or is a property owned by an individual who is a fugitive economic offender, and

   b) Which is being or is likely to be dealt with in a manner which may result in the property being unavailable for confiscation.  

                 

Search and Seizure [Sec 8]

Where the Director or any officer authorised by Director not below the rank of Deputy Director, on the basis of information in his possession, has reason to believe that any person –

     i) May be declared as a fugitive economic offender;

     ii) Is in possession of any proceeds of crime;

     iii) Is in possession of any records which may relate to proceeds of crime; or

     iv) Is in possession of any property related to proceeds of crime,

Then subject to any rules made in this behalf, he may authorise any officer sub-ordinate to him to-

     a) Enter and search any building, place, vessel, vehicle or aircraft where he has reason to believe that such records or proceeds or crime are kept;

     b) Break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred in clause (a) where the keys thereof are not available;

    c) Seize any record or property found as a result of such search;

    d) Place marks of identification on such record or property, if required or make or cause to be made extracts or copies therefrom;

    e)  Make a note or an inventory of such record or property; and

    f)  Examine on oath any person, who is found to be in possession or control of any record or property, in respect of all matters relevant for the purposes of any investigation under this Act.

Notice [Sec 10]

1. Where an application for fugitive economic offender has been filed, the Special Court shall issue a notice to an individual who is alleged to be an fugitive economic offender.

    2. The notice shall be issued to any other person who has interest in the property mentioned in the application for fugitive economic offender.

    3. A notice shall –

     a) require the Individual to appear at a specified place and time not less than 6 weeks from the date of issue of notice; and

     b) state the failure to appear on the specified place and time shall result in a declaration of the individual as a fugitive economic offender and confiscation of property under this Act.

Declaration of Fugitive Economic Offender [Sec 12]

1. After hearing the application, if the Special Court is satisfied that an individual is a fugitive economic offender, it may, by an order, declare the individual as a fugitive economic offender for reasons to be recorded in writing.

    2. On declaration, the Special Court may order that any of the following properties stand confiscated to Central Government-a) The proceeds of crime in India or abroad, whether or not such property is owned by fugitive economic offender, and 
    b) Any other property or benami property in India or abroad, owned by the fugitive economic offender.

Scheduled Offences
1. Offences under Indian Penal Code, 1860 [120B,255,257,258,259,260,417,418,420,421,422,423,424,,467,471,472,,473,475,476,481 to 489B].

    2. Offence under the Negotiable Instruments Act, 1881 [Sec 138]

    3. Offence under the Reserve Bank of India Act, 1934 [Sec 58B]

    4. Central Excise Act, 1944 [Sec 9]

    5. Offences under the Customs Act, 1962 [Sec 135]

    6. Offences under the Prohibition of Benami Property Transactions Act, 1988 [Sec 3]

    7. Offences under the Prevention of Corruption Act, 1988 [Sec 7,8,9,10,13]

    8. Offences under the Securities Exchange Board of India Act, 1992 [Sec 12A, 24]

    9. Offences under the Prevention of Money Laundering Act, 2002 [Sec 3,4]

   10. Offences under the Limited Liability Partnership Act, 2008 [Sec 30(2)]

   11. Offences under the Foreign Contribution (Regulation) Act,2010 [Sec 34,35]

  12. Offences under the Companies Act, 2013 [Sec 42(4),74,76A,206(4),213(b),447,452]

  13. Offences under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 [Sec 51]

 14. Offences under the Insolvency and Bankruptcy Code, 2016 [Sec 69]

 15. Offences under the Central Goods and Services Act, 2017 [Sec 132(5)]
   
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