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Fugitive Economic Offender in India - Arthashastra

Fugitive Economic Offender In India

"On Saturday 5 jan 2019 Absconding liquor baron Vijay Mallya be declared a Fugitive Economic Offender by a Special Court hearing case under Fugitive Economic Offender Act ."
Fugitive Economic Offender in India - Arthashastra
Fugitive Economic Offender in India - Arthashastra

What is a Fugitive Economic Offender ?

It is an Individual who has committed some specified offences involving an amount of one ₹100 crore or more and had absconded from India or refuses to come back to India to avoid or face criminal prosecutions in India .


As in the recent times the case related to  Benami Property and Absconding by doing Economic Offences are increasing in India .eg - the case related to Nirav Modi etc.

As to counter these all Fugitive Offences the Government had passed Fugitive Economic Offender Bill , 2018 which declares the economic offences and as per that , if an arrest warrant issued by Special Court
 The person would be declared as an Fugitive Economic Offender. According to Fugitive Economic Offender Act there are 55 economEc offences which includes (1) benami transaction , (2) counterfeiting government stamp or currency ,(3) dishonoring cheques , (4) tax evaison etc.

Reasons For the Fugitive Economic Offender Act

  • Offences - Hare there are several instances of Economic Offences and fleeing the jurisdiction of Indian Court.
  • No Other law - There was no existing singel Civil or criminal provisions or  law that deals with all the provision ( Absconding , Attachment , Confiscation , search and seizure and Contracting State )  which hampers investigation in these cases.
  • Financial Health -  Most such cases of Economic offences involve non repayment of bank loans i.e worsening Banks condition.
  • UN Convention - As India is a signatory of United Nations Convention against Corruption. which enables signatories to consider taking such measures .

Important Provisions of Fugitive Economic Offender Act 

  • Property - The property of the Fugitive Economic Offender would be Confiscated once declared by the court, including property in abroad.
  • Civil Claims - The Fugitive Economic Offender would be disentitled from defending any civil claim .
  • Administrator - An Administrator will be appointed to manage and dispose of the confiscated property of Fugitive Economic Offender.
  • Search Warrant - The Bill does not require the authority to obtain a search warrant or ensure the presence of witness before search.

Conclusion

The Fugitive Economic Offender Act , 2018 expects to re - establishes Rule Of Law w.r.t Fugitive Economic Offender as they would be forced to return to India to face trial as now Vijay Mallya have to  , helping bank and other Financial Institutions for their higher recovery from default i.e improving the Financial Health of such Institution .



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