Page 35 - BF Cover February 2019

ARTICLE

Purpose : ii) if the total value involved in such offence or offences is
Fugitive Economic Offenders Act, 2018 aims to preserve the Rs. 100 crore or more.
sanctity of the rule of law in India by providing deterrence
measures against 'absconding economic offenders', who Application for declaration of Fugitive
evade of process of law by staying outside of jurisdiction of economic offender (Section 4, FEO Act
Indian courts. The act is primarily applicable to big sized or
white collar offenders, those involved in financial 2018):
misdemeanours or frauds, who fled the country to evade (1) A Director or Deputy Director (appointed under the
criminal trials for economic offences in Indian courts. Prevention of Money-Laundering Act, 2002) may file an
application before a special court (designated under the
Key Features : 2002 Act) to declare a person as a fugitive economic
offender.
Definition of Fugitive economic offender (Section 2(1)(f),
FEO Act 2018):
(2) Such an application should contain -
"Fugitive Economic Offender" means any individual against a) reasons for the belief that an individual is a fugitive
whom a warrant for arrest in relation to a Scheduled Offence economic offender (on the basis of material in his
has been issued by any Court in India, who- possession);
(i) has left India so as to avoid criminal prosecution; or b) any information available about whereabouts of the
(ii) being abroad, refuses to return to India to face criminal fugitive economic offender;
prosecution
c) a list of properties believed to be the proceeds of crime
for which confiscation is sought;
Scheduled Offence (Sec 2(1)(m), FEO Act 2018) :
d) a list of properties or benami properties owned by the
i) an offence specified in the Schedule, containing 55 individual in India or abroad for which confiscation is
offences under 15 various laws, namely - sought; and
♦ Cheating, forgery and counterfeiting under Indian Penal
e) a list of persons who may have an interest in any of the
Code, 1860 (IPC) properties listed under clauses (c) and (d).
♦ Dishonour of cheques under Negotiable Instruments Act
1881 (NIA) Attachment of property (Section 5, FEO
♦ Illegal gratification/ bribery to public officials under
Prevention of Corruption Act, 1988 (PoCA) Act 2018):
♦ Money-laundering under the Prevention of Money (1) The Director or Deputy Director, may, with the
Laundering Act, 2002 (PMLA) permission of the Special Court, attach any property
♦ Transactions defrauding creditors under Limited Liability mentioned in the application under section 4 by an order in
Partnership Act, 2008 (LLP) writing.
♦ Fraud under Companies Act, 2013
♦ Transactions defrauding creditors under Insolvency & (2) The Director or Deputy Director, may also, by an order
Bankruptcy Code, 2016 (IBC) in writing, at any time prior to the filing of the application
under section 4, attach provisionally any property-

a) for which there is a reason to believe that the property
is 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 being unavailable for
confiscation

Provided that the Director or Deputy Director shall file an
application u/sec 4 before the Special Court within a period
of 30 days from the date of such attachment.

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