The Fugitive Economic Offenders Bill, 2018
🔷 What is the Fugitive Economic Offenders Bill, 2018?
The Fugitive Economic Offenders Bill, 2018 was introduced by the Indian Government to tackle the problem of economic offenders who flee the country to escape the legal process. The bill became law as the Fugitive Economic Offenders Act, 2018 after being passed by Parliament.
🔷 Objective of the Bill
The main purpose of this legislation is:
To prevent offenders from evading Indian law by remaining outside the country.
To confiscate properties of such fugitives.
To create a legal framework to bring back economic offenders.
🔷 Who is a Fugitive Economic Offender (FEO)?
A person is declared a Fugitive Economic Offender if:
A court has issued an arrest warrant for them.
They have left India to avoid criminal prosecution, or they refuse to return.
They are involved in a scheduled economic offence involving ₹100 crore or more.
🔷 Examples of Scheduled Offences
These include (but are not limited to):
Money laundering
Bank fraud
Counterfeiting currency
Cheque dishonour (Section 138 of the NI Act)
Benami transactions
Financial scams
Tax evasion and embezzlement
🔷 Key Features of the Bill
1. Applicability
Applies to individuals involved in economic offences of ₹100 crore or more.
Targets those who have fled India or refuse to return.
2. Special Courts
Cases under this law are handled by Special Courts set up under the Prevention of Money Laundering Act (PMLA).
3. Declaration of FEO
The Enforcement Directorate (ED) or other authorized agency can apply to the Special Court.
The person is given a chance to appear within six weeks.
If they do not appear, the court can declare them a Fugitive Economic Offender.
4. Attachment and Confiscation of Property
Once declared an FEO, the court can confiscate all properties of the person:
Both in India and abroad
Including benami properties
Even non-criminal assets (not directly linked to the crime)
5. No Civil Claims
An FEO is barred from filing or defending any civil case in India.
Even companies where the FEO is a majority shareholder or key manager can face restrictions.
6. Administrator
The central government appoints an administrator to manage and dispose of confiscated properties.
🔷 Procedure under the Act
Filing Application: The ED files an application before the Special Court.
Notice: Court issues notice to the accused to appear.
Declaration: If they don’t appear, they are declared an FEO.
Confiscation: Court orders confiscation of all assets.
Disposal of Assets: Administrator sells the assets and deposits proceeds into government accounts.
🔷 Importance of the Law
Deters big economic criminals from escaping the law.
Helps in recovering stolen money or defrauded amounts.
Restores public confidence in the financial and judicial system.
Strengthens India’s global image in tackling white-collar crime.
🔷 Criticisms & Concerns
High threshold of ₹100 crore may let smaller offenders go free.
The law may lead to harsh consequences even before the person is convicted.
Civil rights bar could be seen as excessive or unconstitutional.
Difficulty in confiscating foreign assets without international cooperation.
🔷 Real-Life Relevance
The law was enacted in response to high-profile cases like:
Vijay Mallya – involved in massive loan defaults and fled to the UK.
Nirav Modi & Mehul Choksi – involved in the Punjab National Bank scam, fled to other countries.
This law was seen as a direct tool to prevent such cases in the future and to empower Indian authorities to act faster.
🔷 Summary Table
| Aspect | Details |
|---|---|
| Purpose | To punish and deter fugitive economic offenders |
| Threshold | ₹100 crore or more in economic offences |
| Declaring Authority | Special Court under PMLA |
| Enforcement Agency | Enforcement Directorate (ED) |
| Main Power | Confiscation of all assets of the offender |
| Impact | Civil rights curtailed; barred from lawsuits |
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