Fugitive Economic Offenders

  • IASbaba
  • December 21, 2021
  • 0
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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.

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.

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