FUGITIVE ECONOMIC OFFENDERS BILL

The Union government has passed Fugitive Economic Offenders Bill, 2018 which was
proposed by Ministry of Finance in parliament. This Bill seeks to cover those offenders who
flee the country to avoid proceeding against them after committing economic frauds. This
Bill empowers banks and other financial institution to confiscate the assets of fugitive
offenders to recover the money.

NECESSITY OF SUCH LAW: Fugitive Economic Offenders Bill comes into existence in
the backdrop of many incidents of fleeing away of economic offenders out of the jurisdiction
of Indian Court to avoid criminal proceedings. When these offenders are in some other
jurisdiction, they cannot be forced to come back to India and also they cannot be charged
under the provision of Indian legislations. Leaving country has become one of the easiest
ways for them to avoid proceedings against them. This practice has hampered the business of
banks and financial institution to large extent. Absence of such offenders from Indian courts
hampers the criminal proceedings, it wastes precious time of courts and also it undermines
the rule of law. The existing civil and criminal provisions in law are not adequate to deal
with such problem. So in such scenario it is very much needed to have some legislation like
this which can bring such offenders back to India to face criminal trial and do justice to rule
of law.

WHO IS FUGITIVE ECONOMIC OFFENDER? A Fugitive Economic Offender is a person

against whom an arrest warrant has been issued in respect of a schedule offence and who has
left India so as to avoid criminal prosecution or being abroad, who refuses to return to India
to face criminal prosecution. List of offences given in draft includes cheating, forgery, fraud,
corruption, insider trading, customs evasion and more.

HIGHLIGHTS OF BILL:

1. This Bill will covers economic offences only more than Rs 100 crores.
2. This Bill seeks to curb the practice of evading the criminal prosecution by the
economic offenders who flee the country to avoid the jurisdiction of Indian Courts.
3. Under this Bill Government, banks and other financial institution will get right to
confiscate the property of such economic offenders in India and abroad also to
recover the amount. This Bill also allows confiscation of Benami properties also.
 4. This Bill allows the Financial Intelligence Unit (FIU), a unit of Ministry of Finance to
file an application before special court for declaration of fugitive economic offenders
to confiscate their assets. Notice must also be issued to offender by special court to
inform him that he has been declared as Fugitive Economic Offender.
5. This Bill also has provision which allows the accused to file an appeal in the High
Court to state their case.
6. Fugitive Economic Offender would be disentitled from defending any civil claim.
7. Also, The Bill has provision for appointment of administrator to manage and dispose
of the property to pay off the creditors.

The Fugitive Economic Offenders Bill would try to prosecute the offenders even if they are
evading the prosecution of Indian courts by remaining outside the jurisdiction of Indian court.
Under this mechanism banks and other financial institution would confiscate the assets
(assets in India and outside India) of offenders which would force them to return to India to
face criminal prosecution and obey the rule of law. It will help financial institutions to
improve their financial condition and help in the economy of the country.

This Bill would propose a special forum for expeditious confiscation of the proceeds of the
crime which would coerce the fugitive offender to return to India.

It is a very good step in order to curb the practice of fleeing away to avoid the liability of
repayment of loan amount. This will help banks and financial institutions to improve their
financial health. One most controversial issue with this is that once a person has been
declared offender, he cannot file or defend any civil claim regarding that property. Even if he
has not been declared guilty by court of law, he cannot defend his property from government
which has become full custodian of any attached property.