To seize and punish

To seize and punish

Context

The Fugitive Economic Offenders Bill, 2018

What is the objective behind the bill?

The bill aims to provide for measures to deter fugitive economic offenders from evading the process of law in India. It is a deterrent for those offenders who continue to stay outside the jurisdiction of Indian courts

• Examples include: Fugitive businesspersons Vijay Mallya and Nirav Modi have resisted the jurisdiction of Indian courts

Need of the bill

• Obstruction justice: The absence of such offenders from Indian courts has several harmful consequences, such as obstructing investigation in criminal cases and wasting the precious time of courts. In effect, it undermines the rule of law in India
• Financial health is affected: Further, cases of economic offences involving non-repayment of bank loans impact the financial health of the banking sector and erode the government’s declared fight against corruption

Definition of fugitive economic offender

Bill defines a “fugitive economic offender” as a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution

• A scheduled offence refers to a list of economic offences contained in the Schedule to this Bill

Provisions of the bill

• Power to survey, search and seize: Under this law, the competent authorities can confiscate the property and crime proceeds of a fugitive economic offender and disentitle him from putting forward or defending any civil claim for his assets
• Burden of proof on the authorities: The burden of proof for establishing that a person is a fugitive economic offender or that a property is the proceeds of crime shall be on the authorities concerned
• Appeal will lie to High Court:An appeal shall be to the High Court concerned against the orders issued by the Special Court
• Attachment of the property:Bill contains provisions allowing the attachment of the property of a fugitive economic offender and proceeds of crime
• The cases where the total value involved in such offences is Rs.100 crore or more, will come under the purview of this Bill
• Special court: The Bill makes provisions for a Court (‘Special Court’ under the Prevention of Money-laundering Act, 2002) to declare a person as a Fugitive Economic Offender