Fugitive Economic Offenders Act, 2018

To deter fugitive economic offenders from evading process of law in India by staying outside jurisdiction of Indian courts.

Fugitive Economic Offenders Act, 2018

Act No. 17 of 2018

[31st July, 2018]

An Act to provide for measures to deter fugitive economic offenders from evading the process of law in India by staying outside the jurisdiction of Indian courts, to preserve the sanctity of the rule of law in India and for matters connected therewith or incidental thereto

Be it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:

Statement of Objects and Reasons.—There have been several instances of economic offenders fleeing the jurisdiction of Indian courts anticipating the commencement of criminal proceedings or sometimes during the pendency of such proceedings. The absence of such offenders from Indian courts has several deleterious consequences, such as, it obstructs investigation in criminal cases, it wastes precious time of courts and it undermines the rule of law in India. Further, most of such cases of economic offences involve non-repayment of bank loans thereby worsening the financial health of the banking sector in India. The existing civil and criminal provisions in law are inadequate to deal with the severity of the problem.

2. In order to address the said problem and lay down measures to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts, it is proposed to enact a legislation, namely, the Fugitive Economic Offenders Bill, 2018, to ensure that fugitive economic offenders return to India to face the action in accordance with law.

3. The said Bill, inter alia, provides for:

(i) the definition of the fugitive economic offender as an individual who has committed a scheduled offence or offences involving an amount of one hundred crore rupees or more and has absconded from India or refused to come back to India to avoid or face criminal prosecution in India;

(ii) attachment of the property of a fugitive economic offender and proceeds of crime;

(iii) the powers of Director relating to survey, search and seizure and search of persons;

(iv) confiscation of the property of a fugitive economic offender and proceeds of crime;

(v) disentitlement of the fugitive economic offender from putting forward or defending any civil claim;

(vi) appointment of an Administrator for the purposes of the proposed legislation;

(vii) appeal to the High Court against the orders issued by the Special Court; and

(viii) placing the burden of proof for establishing that an individual is a fugitive economic offender on the Director or the person authorised by the Director.

4. The Bill seeks to achieve the above objectives.

Chapter I

PRELIMINARY

1. Short title, extent and commencement.

1. Short title, extent and commencement.—(1) This Act may be called the Fugitive Economic Offenders Act, 2018.

(2) It extends to the whole of India.

(3) It shall be deemed to have come into force on the 21st day of April, 2018.

2. Definitions.

2. Definitions.—(1) In this Act, unless the context otherwise requires,—

(a) “Administrator” means an Administrator appointed under sub-section (1) of Section 15;

(b) “benami property” and “benami transaction” shall have the same meanings as assigned to them under clauses (8) and (9) respectively of Section 2 of the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988);

(c) “contracting State” means any country or place outside India in respect of which arrangements have been made by the Central Government with the Government of such country through a treaty or otherwise;

(d) “Deputy Director” means the Deputy Director appointed under sub-section (1) of Section 49 of the Prevention of Money Laundering Act, 2002 (15 of 2003);

(e) “Director” means the Director appointed under sub-section (1) of Section 49 of the Prevention of Money Laundering Act, 2002 (15 of 2003);

(f) “fugitive economic offender” means any individual against whom a warrant for arrest in relation to a scheduled offence has been issued by any Court in India, who—

(i) has left India so as to avoid criminal prosecution; or

(ii) being abroad, refuses to return to India to face criminal prosecution;

(g) “key managerial personnel” shall have the same meaning as assigned to it in clause (51) of Section 2 of the Companies Act, 2013 (18 of 2013);

(h) “notification” means a notification published in the Official Gazette and the expression “notify” shall be construed accordingly;

(i) “person” includes—

(i) an individual;

(ii) a Hindu Undivided Family;

(iii) a company;

(iv) a trust;

(v) a partnership;

(vi) a limited liability partnership;

(vii) an association of persons or a body of individuals, whether incorporated or not;

(viii) every artificial juridical person not falling within any of the preceding sub-clauses; and

(ix) any agency, office or branch owned or controlled by any of the above persons mentioned in the preceding sub-clauses;

(j) “prescribed” means prescribed by rules made under this Act;

(k) “proceeds of crime” means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence, or the value of any such property, or where such property is taken or held outside the country, then the property equivalent in value held within the country or abroad;

(l) “Schedule” means the schedule appended to this Act;

(m) “Scheduled Offence” means an offence specified in the schedule, if the total value involved in such offence or offences is one hundred crore rupees or more;

(n) “Special Court” means a Court of Session designated as a Special Court under sub-section (1) of Section 43 of the Prevention of Money Laundering Act, 2002 (15 of 2003).

(2) The words and expressions used and not defined in this Act but defined in the Prevention of Money Laundering Act, 2002 (15 of 2003) shall have the meanings respectively assigned to them in that Act.

3. Application of Act.

3. Application of Act.—The provisions of this Act shall apply to any individual who is, or becomes, a fugitive economic offender on or after the date of coming into force of this Act.

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