FUGITIVE ECONOMIC OFFENDERS ACT, 2018

IN NEWS:

• The Enforcement Directorate (ED) on Wednesday said it has confiscated assets worth Rs 329.66 crore of diamond merchant Nirav Modi under the fugitive economic offenders act.

ABOUT THE ACT:

• The objective of the act is to curb the practice of economic offenders evading criminal prosecution by fleeing from the country and remaining outside jurisdiction of Indian courts.
• Those ‘economic offences’ as defined under the Prevention of Corruption Act, the SEBI Act, the Customs Act, the Companies Act, the Insolvency and Bankruptcy Code, Limited Liability Partnership Act and Indian Penal Code can be prosecuted under the act.

Definition of Fugitive economic offender (FEO):

• A person against whom arrest warrant has been issued where value involved is over Rs. 100 crore and he has left country and refuses to return to face prosecution.
• As per the act, Special Courts can require the person to appear at specified place at least six weeks from issue notice.
• If the offender does not comply, he will be declared as ‘fugitive economic offender’. He is also barred from filing or defending a civil claim.

Confiscation of property:

• Upon declaration as FEO, properties of person will be confiscated by the Director/Deputy Director and vested in central government, free of rights and claims in property.
• An administrator is appointed by the Special Court to take care of the confiscated property.

PRELIMS QUESTION:

Q. With reference to the Fugitive Economic Offenders Act (FEOA), consider the following statements:

1. Fugitive economic offender (FEO) is a person against whom an arrest warrant has been issued for committing economic offence that values at least Rs 1000 crore.
2. There are provisions for special courts under the act.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer to Prelims question