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STUDY FOR CIVIL SERVICES- MANVENDRA PRATAP SINGH

The Fugitive Economic Offenders Bill, 2017

What is the Bill?


The Bill aims to stop economic offenders who leave the country to avoid due
process. Offences involving amounts of ₹100 crore or more fall under the
purview of this law.
Economic offences are those that are defined under the Indian Penal Code,
the Prevention of Corruption Act, the SEBI Act, the Customs Act, the
Companies Act, Limited Liability Partnership Act, and the Insolvency and
Bankruptcy Code.

Who is a ‘fugitive economic offender’?


According to Section 4 of the law, a ‘fugitive economic offender’ is “any
individual against whom a warrant for arrest in relation to a scheduled offence
has been issued by any court in India, who:
(i) leaves or has left India so as to avoid criminal prosecution; or
(ii) refuses to return to India to face criminal prosecution.”

How is a person declared an offender?


A Director, appointed by the central government, will have to file an
application to a Special Court to declare a person as a ‘fugitive economic
offender’.
Under Clause (2) of Section 6, the application must contain:
“(a) reason/s for the belief that an individual is a fugitive economic offender;
STUDY FOR CIVIL SERVICES- MANVENDRA PRATAP SINGH

(b) any information available as to the whereabouts of the fugitive economic


offender;
(c) a list of properties or the value of such properties believed to be the
proceeds of crime, including any such property outside India for which
confiscation is sought;
(d) a list of properties owned by the person in India for which confiscation is
sought;
(e) a list of persons who may have an interest in any of the properties listed
under sub-clauses (c) and (d).”
The Director has the power to attach any property the accused holds.

What does the offender have to do?


The Court will issue a notice to the person named a ‘fugitive economic
offender’. Within six weeks from the date of notice, the person will have to
present themselves at “a specified place at a specified time”. If the offender
fails to do so, they will be declared a ‘fugitive economic offender’ and their
properties as listed in the Director’s application will be confiscated.

Once property is confiscated, can the offender file a civil claim?


No. Section 11 of the Act disqualifies those declared as offenders from either
filing or defending a civil claim in court.

What happens to the properties?


The Special court will appoint an ‘administrator’ to oversee the confiscated
property. This person will be responsible for disposing of the property as
well, and the property will be used to satisfy creditors’ claims.

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