4. (1) Where the Director or any other officer not below the rank of Deputy Director
authorised by the Director for the purposes of this section, has reason to believe (the
reasons for such belief to be recorded in writing), on the basis of material in his possession,
that any individual is a fugitive economic offender, he may file an application in such form
and manner as may be prescribed in the Special Court that such individual may be declared
as a fugitive economic offender.
(2) The application referred to in sub-section (1) shall contain—
(a) reasons for the belief that an individual is a fugitive economic offender;
(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 or benami properties owned by the individual in India or
abroad for which confiscation is sought; and
(e) a list of persons who may have an interest in any of the properties listed
under clauses (c) and (d).
(3) The Authorities appointed for the purposes of the Prevention of Money-laundering
Act, 2002 shall be the Authorities for the purposes of this Act.
5. (1) The Director or any other officer authorised by the Director, not below the rank
of Deputy Director, may, with the permission of the Special Court, attach any property
mentioned in the application under section 4 by an order in writing in such manner as may be
prescribed.
(2) Notwithstanding anything contained in sub-section (1) or section 4, the Director
or any other officer, not below the rank of Deputy Director, authorised by the Director, may,
by an order in writing, at any time prior to the filing of the application under section 4, attach
any property—
(a) for which there is a reason to believe that the property is proceeds of crime,
or is a property or benami property owned by an individual who is a fugitive economic
offender; and
(b) which is being or is likely to be dealt with in a manner which may result in the
property being unavailable for confiscation:
Provided that the Director or any other officer who provisionally attaches any property
under this sub-section shall, within a period of thirty days from the date of such attachment,
file an application under section 4 before the Special Court.
(3) The attachment of any property under this section shall continue for a period of
one hundred and eighty days from the date of order of attachment or such other period as
may be extended by the Special Court before the expiry of such period.
(4) Nothing in this section shall prevent the person interested in the enjoyment of the
immovable property attached under sub-section (1) from such enjoyment.
Application
for
declaration of
fugitive
economic
offender and
procedure
therefor.
15 of 2003.
15 of 2003.
Attachment of
property.
Application of
Act.
4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
Explanation.—For the purposes of this sub-section, the expression “person
interested”, in relation to any immovable property includes all persons claiming or entitled to
claim any interest in the property.
6. The Director or any other officer shall, for the purposes of section 4, have the same
powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a
suit in respect of the following matters, namely:—
(a) discovery and inspection;
(b) enforcing the attendance of any person, including any officer of a reporting
entity and examining him on oath;
(c) compelling the production of records;
(d) receiving evidence on affidavits;
(e) issuing commissions for examination of witnesses and documents; and
(f) any other matter which may be prescribed.
7. (1) Notwithstanding anything contained in any other provisions of this Act, where
a Director or any other officer authorised by the Director, on the basis of material in his
possession, has reason to believe (the reasons for such belief to be recorded in writing), that
an individual may be a fugitive economic offender, he may enter any place—
(i) within the limits of the area assigned to him; or
(ii) in respect of which he is authorised for the purposes of this section, by such
other authority, who is assigned the area within which such place is situated.
(2) Where the Director or any other officer authorised by him, on the basis of material
in his possession, has reason to believe (the reasons for such belief to be recorded in
writing) that an individual may be a fugitive economic offender and it is necessary to enter
any place as mentioned in sub-section (1), he may request any proprietor, employee or any
other person who may be present at that time, to—
(a) afford him the necessary facility to inspect such records as he may require
and which may be available at such place;
(b) afford him the necessary facility to check or verify the proceeds of crime or
any transaction related to proceeds of crime which may be found therein; and
(c) furnish such information as he may require as to any matter which may be
useful for, or relevant to any proceedings under this Act.
(3) The Director, or any other officer acting under this section may—
(i) place marks of identification on the records inspected by him and make or
cause to be made extracts or copies therefrom;
(ii) make an inventory of any property checked or verified by him; and
(iii) record the statement of any person present at the property which may be
useful for, or relevant to, any proceeding under this Act.
8. (1) Notwithstanding anything contained in any other law for the time being in force,
where the Director or any other officer not below the rank of Deputy Director authorised by
him for the purposes of this section, on the basis of information in his possession, has
reason to believe (the reason for such belief to be recorded in writing) that any person—
(i) may be declared as a fugitive economic offender;
(ii) is in possession of any proceeds of crime;
(iii) is in possession of any records which may relate to proceeds of crime; or
5 of 1908.
Powers of
Director and
other officers.
Power of
survey.
Search and
seizure.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5
(iv) is in possession of any property related to proceeds of crime,
then, subject to any rules made in this behalf, he may authorise any officer subordinate to
him to—
(a) enter and search any building, place, vessel, vehicle or aircraft where he has
reason to suspect that such records or proceeds of crime are kept;
(b) break open the lock of any door, box, locker, safe, almirah or other receptacle
for exercising the powers conferred by clause (a) where the keys thereof are not
available;
(c) seize any record or property found as a result of such search;
(d) place marks of identification on such record or property, if required or make or
cause to be made extracts or copies therefrom;
(e) make a note or an inventory of such record or property; and
(f) examine on oath any person, who is found to be in possession or control of
any record or property, in respect of all matters relevant for the purposes of any
investigation under this Act.
(2) Where an authority, upon information obtained during survey under section 7, is
satisfied that any evidence shall be or is likely to be concealed or tampered with, he may, for
reasons to be recorded in writing, enter and search the building or place where such evidence
is located and seize that evidence.
9. Notwithstanding anything contained in any other law for the time being in force—
(a) if an authority, authorised in this behalf by the Central Government by general
or special order, has reason to believe (the reason for such belief to be recorded in
writing) that any person has secreted about his person or anything under his possession,
ownership or control, any record or proceeds of crime which may be useful for or
relevant to any proceedings under this Act, he may search that person and seize such
record or property which may be useful for or relevant to any proceedings under this
Act;
(b) where an authority is about to search any person, he shall, if such person so
requires, take such person within twenty-four hours to the nearest Gazetted Officer,
superior in rank to him, or a Magistrate:
Provided that the period of twenty-four hours shall exclude the time necessary
for the journey undertaken to take such person to the nearest Gazetted Officer, superior
in rank to him, or the Magistrate’s Court;
(c) if the requisition under clause (b) is made, the authority shall not detain the
person for more than twenty-four hours prior to taking him before the Gazetted Officer,
superior in rank to him, or the Magistrate referred to in that clause:
Provided that the period of twenty-four hours shall exclude the time necessary
for the journey from the place of detention to the office of the Gazetted Officer, superior
in rank to him, or the Magistrate’s Court;
(d) the Gazetted Officer or the Magistrate before whom any such person is
brought shall, if he sees no reasonable ground for search, forthwith discharge such
person but otherwise shall direct that search be made;
(e) before making the search under clause (a) or clause (d), the authority shall
call upon two or more persons to attend and witness the search and the search shall be
made in the presence of such persons;
(f) the authority shall prepare a list of record or property seized in the course of
the search and obtain the signatures of the witnesses on the list;
Search of
persons.
6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(g) no female shall be searched by anyone except a female; and
(h) the authority shall record the statement of the person searched under
clause (a) or clause (d) in respect of the records or proceeds of crime found or seized
in the course of the search.
10. (1) Where an application under section 4 has been duly filed, the Special Court
shall issue a notice to an individual who is alleged to be a fugitive economic offender.
(2) The notice referred to in sub-section (1), shall also be issued to any other person
who has any interest in the property mentioned in the application under sub-section (2) of
section 4.
(3) A notice under sub-section (1) shall—
(a) require the individual to appear at a specified place and time not less than six
weeks from the date of issue of such notice; and
(b) state that failure to appear on the specified place and time shall result in a
declaration of the individual as a fugitive economic offender and confiscation of
property under this Act.
(4) A notice under sub-section (1) shall be forwarded to such authority, as the Central
Government may notify, for effecting service in a contracting State.
(5) The authority referred to in sub-section (4) shall make efforts to serve the notice
within a period of two weeks in such manner as may be prescribed.
(6) A notice under sub-section (1) may also be served to the individual alleged to be a
fugitive economic offender by electronic means to—
(a) his electronic mail address submitted in connection with an application for
allotment of Permanent Account Number under section 139A of the Income-tax
Act, 1961;
(b) his electronic mail address submitted in connection with an application for
enrolment under section 3 of the Aadhaar (Targeted Delivery of Financial and Other
Subsidies, Benefits and Services) Act, 2016; or
(c) any other electronic account as may be prescribed, belonging to the individual
which is accessed by him over the internet, subject to the satisfaction of the Special
Court that such account has been recently accessed by the individual and constitutes
a reasonable method for communication of the notice to the individual.
11. (1) Where any individual to whom notice has been issued under sub-section (1) of
section 10 appears in person at the place and time specified in the notice, the Special Court
may terminate the proceedings under this Act.
(2) Where any individual to whom notice has been issued under sub-section (1) of
section 10 fails to appear at the place and time specified in the notice, but enters appearance
through counsel, the Special Court may in its discretion give a period of one week to file a
reply to the application under section 4.
(3) Where any individual to whom notice has been issued under sub-section (1) of
section 10 fails to enter appearance either in person or through counsel, and the Special
Court is satisfied—
(a) that service of notice has been effected on such party; or
(b) that notice could not be served in spite of best efforts because such individual
has evaded service of notice,
it may, after recording reasons in writing, proceed to hear the application.
Notice.
Procedure for
hearing
application.
43 of 1961.
18 of 2016.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7
(4) The Special Court may also give any person to whom notice has been issued under
sub-section (2) of section 10 a period of one week to file a reply to the application under
section 4.
12. (1) After hearing the application under section 4, if the Special Court is satisfied
that an individual is a fugitive economic offender, it may, by an order, declare the individual
as a fugitive economic offender for reasons to be recorded in writing.
(2) On a declaration under sub-section (1), the Special Court may order that any of the
following properties stand confiscated to the Central Government—
(a) the proceeds of crime in India or abroad, whether or not such property is
owned by the fugitive economic offender; and
(b) any other property or benami property in India or abroad, owned by the
fugitive economic offender.
(3) The confiscation order of the Special Court shall, to the extent possible, identify the
properties in India or abroad that constitute proceeds of crime which are to be confiscated
and in case such properties cannot be identified, quantify the value of the proceeds of crime.
(4) The confiscation order of the Special Court shall separately list any other property
owned by the fugitive economic offender in India which is to be confiscated.
(5) Where the Special Court has made an order for confiscation of any property under
sub-section (2), and such property is in a contracting State, the Special Court may issue a
letter of request to a Court or authority in the contracting State for execution of such order.
(6) Every letter of request to be transmitted to a contracting State under sub-section (5)
shall be transmitted in such form and manner as the Central Government may, by notification,
specify in this behalf.
(7) The Special Court may, while making the confiscation order, exempt from confiscation
any property which is a proceed of crime in which any other person, other than the fugitive
economic offender, has an interest if it is satisfied that such interest was acquired bona fide
and without knowledge of the fact that the property was proceeds of crime.
(8) All the rights and title in the confiscated property shall, from the date of the
confiscation order, vest in the Central Government, free from all encumbrances.
(9) Where on the conclusion of the proceedings, the Special Court finds that the
individual is not a fugitive economic offender, the Special Court shall order release of property
or record attached or seized under this Act to the person entitled to receive it.
(10) Where an order releasing the property has been made by the Special Court under
sub-section (9), the Director or any other officer authorised by him in this behalf may withhold
the release of any such property or record for a period of ninety days from the date of receipt
of such order, if he is of the opinion that such property is relevant for the appeal proceedings
under this Act.
13. (1) Where at any time after the institution of the application under section 4, any
other property is discovered or identified which constitutes proceeds of crime or is property
or benami property owned by the individual in India or abroad who is a fugitive economic
offender liable to be confiscated under this Act, the Director or any other officer not below
the rank of Deputy Director authorised by the Director for the purposes of this section, may
file a supplementary application in the Special Court seeking confiscation of such properties.
(2) The provisions of sections 4 to 12 shall, as far as may be, apply in relation to such
application as they apply in relation to an application under section 4.
14. Notwithstanding anything contained in any other law for the time being in force,—
(a) on a declaration of an individual as a fugitive economic offender, any Court
or tribunal in India, in any civil proceeding before it, may, disallow such individual from
putting forward or defending any civil claim; and
Declaration
of fugitive
economic
offender.
Supplementary
application.
Power to
disallow civil
claims.
8 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(b) any Court or tribunal in India in any civil proceeding before it, may, disallow
any company or limited liability partnership from putting forward or defending any
civil claim, if an individual filing the claim on behalf of the company or the limited
liability partnership, or any promoter or key managerial personnel or majority
shareholder of the company or an individual having a controlling interest in the limited
liability partnership has been declared as a fugitive economic offender.
Explanation.— For the purposes of this section, the expressions—
(a) “company” means any body corporate and includes a firm, or other
association of persons; and
(b) “limited liability partnership” shall have the same meaning as assigned
to it in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership
Act, 2008.
15. (1) The Central Government may, by order published in the Official Gazette, appoint
as many of its officers (not below the rank of a Joint Secretary to the Government of India) as
it thinks fit, to perform the functions of an Administrator.
(2) The Administrator appointed under sub-section (1) shall receive and manage the
property in relation to which an order has been made under sub-section (2) of section 12 in
such manner and subject to such conditions as may be prescribed.
(3) The Administrator shall also take such measures, as the Central Government may
direct, to dispose of the property which is vested in the Central Government under
section 12:
Provided that the Central Government or the Administrator shall not dispose of any
property for a period of ninety days from the date of the order under sub-section (2) of
section 12.