UPSC Articles
Fugitive Economic Offenders
Part of: Prelims and GS-III- Money Laundering
Context Union Finance Minister Nirmala Sitharaman informed the Lok Sabha that banks have recovered ₹13,109.17 crore by selling the assets of fugitives like Vijay Mallya, Nirav Modi and Mehul Choksi.
- All the three have been declared ‘Fugitive Economic Offenders’ by PMLA (Prevention of Money Laundering Act) Court in Mumbai.
About Fugitive Economic Offenders Act, 2018
- Fugitive Economic Offenders Act (FEOA) became a law on July 31, 2018.
- Objectives:
- To deter economic offenders from avoiding the process of Indian law by remaining outside the jurisdiction of Indian courts.
- To ensure that fugitive economic offenders return to India to face the action in accordance with law.
- Defining Fugitive economic offender (FEO): FEO is defined as an individual
- who has committed offences involving an amount of 100 crore rupees or more and
- has ran away from India to avoid criminal prosecution.
- Special Court: A special court will be established under the Prevention of Money-laundering Act, 2002 to declare a person as a Fugitive Economic Offender.
- Attachment of property: Special courts can direct the Central government to seize assets of fugitive economic offender including those that are proceeds of the crime.
- Appeal: Appeals against the orders of the special court will lie before the High Court.
