Page 37 - BF Cover February 2019

ARTICLE

Special Court may issue a letter of fugitive economic offender liable to be the High Court, from the date of such
request to a Court or authority in the confiscated under this Act, the Director order.
contracting State for execution of such or Deputy Director may file a
order. supplementary application in the Observations:
Special Court seeking confiscation of The pre-conviction confiscation under
(3) The Special Court may, while such properties. FEO Act 2018 is adoption of United
making the confiscation order, exempt Nations Convention against Corruption
from confiscation any property which is Power to disallow civil ("UNCC"), which India ratified in 2011.
a proceed of crime in which any other Article 54 (1)(c) of the UNCC enables
person, other than the fugitive claims (Section 14, FEO Act signatory countries, as may be
economic offender, has an interest if it 2018):
necessary, to allow confiscation of such
is satisfied that such interest was (1) Any civil court or tribunal may property without a criminal conviction
acquired bonafide and without disallow a person, who has been in cases in which the offender cannot
knowledge of the fact that the declared a fugitive economic be prosecuted by reason of death or
property was proceeds of crime. offender, from filing or defending absence.
any civil claim.
(4) All the rights and title in the Earlier big economic offenders, after
confiscated property shall, from the (2) Any civil court or tribunal may also doing financial fraud or default of
date of the confiscation order, vest in disallow any company or limited hundreds and thousands of crore
the Central Government, free from all liability partnership, where such a amount; wilfully or un-wilfully would
encumbrances. person; who has been declared a leave the country and enjoy their life
fugitive economic offender, is a majority freely, knowing the absence or
(5) Where on the conclusion of the shareholder, promoter, or a key incapability of any law to bring them
proceedings, the Special Court finds managerial person, from filing or back to India for jurisdiction and
that the individual is not a fugitive defending any civil claims. recovery of amount.
economic offender, the Special Court
shall order release of property or Appointment of But now any person, who is accused of
record attached or seized under this a schedule financial offence of 100
Act to the person entitled to receive it. Administrator (Section crore or more; has been issued the
15, FEO Act, 2018): arrest warrant; fled the country and
(6) Where an order releasing the The Central Government may, by order refuses to come back to India can be
property has been made by the Special published in the Official Gazette, booked as 'Fugitive Economic Offender'
Court under sub-section (9), the appoint Administrator (s) (not below under this new law.
Director or Deputy Director may the rank of a Joint Secretary to the
withhold the release of any such Government of India) to manage and Once declared a 'Fugitive Economic
property for a period of 90 days from dispose of confiscated properties u/s 12. Offender' by the Special Court, the FEO
the date of receipt of such order, if he However, Administrator shall not law provides two significant
is of the opinion that such property is dispose of any confiscated property for deterrence measures against such
relevant for the appeal proceedings a period of 90 days from the date of the person :
under this Act. order u/ ss 12 (2). i) Confiscation and Sell of

Proceeds and Assets
Supplementary Application Appeal (Section 17, FEO Act ♦ The Special Court can order
(Section 13, FEO Act 2018) 2018): immediate confiscation of proceeds of
Where at any time after the institution crime and property owned by the
An Appeal against the order of the
of the application under section 4, any Fugitive Economic Offender, whether in
special court may be filed before the
other property is discovered or High Court within a period of 30 days India or abroad. Thereafter,
identified which constitutes proceeds of or maximum 90 days on discretion of government can also sell the
crime or is property owned by the confiscated property after 90 days

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