Law Against Fugitives India – Fugitive Economic Offenders Bill Mind Map UPSC

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Law Against Fugitives India – Fugitive Economic Offenders Bill Mind Map UPSC

Law Against Fugitives India – Fugitive Economic Offenders Bill Mind Map UPSC – The Union cabinet recently approved Fugitive Economic Offenders Bill to confiscate assets of those who flee the country and refuse to return after committing frauds in excess of Rs. 100 crore.

Who is a fugitive economic offender?

  • Fugitive economic offender is a person who has an arrest warrant issued in respect of a scheduled offence and who leaves or has left India to avoid criminal prosecution, or refuses to return to India to face criminal prosecution.

Law Against Fugitives India – Fugitive Economic Offenders Bill Mind Map UPSC

Law Against Fugitives India - Fugitive Economic Offenders Bill Mind Map UPSC

Law Against Fugitives India – Fugitive Economic Offenders Bill Mind Map UPSC

How someone is declared a ‘fugitive economic offender’?

According to the draft law, officials, referred to as directors or deputy directors under the Prevention of Money Laundering Act, can file an application to a Special Court for a declaration that they are a fugitive economic offender. This application should

  1. Give the court the reasons for why it should declare the person a fugitive offender
  2. Provide information about the current whereabouts of the person
  3. Provide a list of properties believed to be the proceeds of the crime
  4. Provide a list of properties which the government believes should be confiscated and,
  5. Provide a list of other persons who may have some interest in those properties.

As soon as such an application is filed, the government can attach (meaning prevent the trading or selling of) any properties mentioned in it for 180 days. Once the application is done, the Special Court will send a notice to the person and anyone else who has interests in the attached property.

Existing laws related to fugitive economic offenders:

The existing laws under which such fugitive economic offenders are tried include:

  1. Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI),
  2. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (SARFESI) and
  3. Insolvency and Bankruptcy Code (IBC).

Highlights of the Bill:

  1. To deter economic offenders from evading the process of Indian law.
  2. Applicable in value of offences over Rs 100 crore.
  3. Empowers Financial Intelligence Unit (FIU) under finance ministry to file an application in special court for the declaration of fugitive economic offender for confiscation of their assets.
  4. As soon as such an application is filed, the government can attach any properties mentioned in it for 180 days.
  5. Once the application is done, the Special Court will send a notice to the person and anyone else who has interests in the attached property. The notice to the person involved will require them to appear at a specific place and time no less than six weeks from the date of the notice. If they refuse to appear for up to six weeks, the Special Court can take up the case and label the person a fugitive economic offender.
  6. Once a fugitive economic offender has been declared, the government can confiscate the “proceeds of the crime”, even if it is not owned by the fugitive offender, and any other properties they own as well.
  7. Confiscation of other  property belonging to such offender in India and abroad, including benami property.
  8. Disentitlement of the fugitive economic offender from defending any civil claim; and
  9. An Administrator will be appointed to manage and dispose of the confiscated property under the Act.
By |2018-10-15T14:15:11+00:00October 15th, 2018|Categories: Mind Maps For UPSC|0 Comments

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