Page 38 - Banking Finance January 2025

ARTICLE

Declaration of fugitive economic Court finds that the individual is not a fugitive economic
offender, the Special Court shall order release of
offender property or record attached or seized under this
1. After hearing the application, if the Special Court is Ordinance to the person entitled to receive it.
satisfied that an individual is a fugitive economic
10. Where an order releasing the property has been made
offender, it may, by an order, declare the individual as
by the Special Court, the Director may withhold the
a fugitive economic offender for reasons to be recorded
release of any such property or record for a period of
in writing.
ninety days from the date of receipt of such order, if he
2. On a declaration, the Special Court may order that any is of the opinion that such property is relevant for the
of the following properties stand confiscated- appeal proceedings under this Ordinance.
a) The proceeds of crime in India or abroad, whether
or not such property is owned by the fugitive Supplementary application
economic offender; and
Where at any time after the institution of the application,
b) Any other property or benami property in India or any other property is discovered or identified which
abroad, owned by the fugitive economic offender. constitutes proceeds of crime or is property owned by the
3. The confiscation order of the Special Court shall, to the fugitive economic offender liable to be confiscated under this
extent possible, identify the properties in India or Ordinance, the Director or officer authorized by the Director
abroad that constitute proceeds of crime which are to for the purposes of this section, may file a supplementary
be confiscated and in case such properties cannot be application in the Special Court seeking confiscation of such
identified, quantify the value of the proceeds of crime. properties.
4. The confiscation order of the Special Court shall
separately list any other property owned by the fugitive Power to disallow civil claims

economic offender in India which is to be confiscated. On a declaration of an individual as a fugitive economic
5. Where the Special Court has made an order for offender, any Court may disallow such individual from
confiscation of any property, and such property is in a defending any civil claim. Any Court may disallow any
contracting State, the Special Court may issue a letter company or limited liability partnership from defending any
of request to a Court or authority in the contracting civil claim, if an individual filing the claim on behalf of the
State for execution of such order. company or the limited liability partnership, or any promoter
or key managerial personnel or majority shareholder of the
6. Every letter of request to be transmitted to a
company or an individual having a controlling interest has
contracting State in such form and manner as the been declared as a fugitive economic offender.
Central Government may, by notification, specify in this
behalf.
Management of properties confiscated
7. The Special Court may, while making the confiscation
The Central Government may, by order published in the
order, exempt from confiscation any property which is
a proceed of crime in which any other person, other Official Gazette, appoint as many of its officers, not below
the rank of a Joint Secretary to the Government of India as
than the fugitive economic offender, has an interest if
it thinks fit, to perform the functions of an Administrator.
it is satisfied that such interest was acquired bonafide
The Administrator appointed shall receive and manage the
and without knowledge of the fact that the property
was proceeds of crime. property in relation to which an order has been made. He
shall also take such measures, as the Central Government
8. All the rights and title in the confiscated property shall, may direct, to dispose of the property which is vested in the
from the date of the confiscation order, vest in the Central Government, provided that the Central Government
Central Government, free from all encumbrances. or the Administrator shall not dispose of any property for a
9. Where on the conclusion of the proceedings, the Special period of ninety days from the date of the order.

34 | 2025 | JANAURY | BANKING FINANCE