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.
