India’s Fugitive Economic Offenders Act, 2018 is a specialized legislation aimed at confiscating the assets of high-value economic offenders who have fled the country to avoid prosecution or refuse to return to face charges. The Act defines the ‘fugitive economic offender’ (FEO) as an individual against whom a warrant of arrest in relation to a scheduled offense has been issued by any court in India and who has left the country or the FEO abroad, who refuses to return to face criminal prosecution.
Salient Features of the Act
The Act aims to take any property, whether in India or abroad, including Benami assets and criminal gains, after designating someone as a fugitive economic offender. Upon confiscation, the central government will become the only owner and own all rights and titles to the property, such as any charges on the property. The Act also permits any civil court or tribunal to bar a designated fugitive economic offender from filing or defending any civil claim.
Significance of the Act
The confiscation of properties of fugitive economic offenders has helped in recovering loan defaults, which has been a major problem for Indian banks. The act provides a mechanism for international cooperation in the investigation and prosecution of economic offenses, helping in the extradition of economic offenders who have fled the country. It has helped in bringing transparency and accountability to the Indian banking sector by ensuring that economic offenders are held responsible for their actions. The act has acted as a strong deterrence for economic offenders from absconding.
Criticisms of the Act
There are criticisms of the Act, including the prohibition against FEOs initiating or defending civil claims, which is considered a violation of Article 21 of the Constitution protecting the right to life. The Act permits the exclusion of properties in which third parties may have an interest, and there is no clarity on whether the central government would split sale revenues with other claimants who do not have such an interest. The Act also does not require authorities to acquire a search warrant or verify the presence of witnesses before conducting a search.
Way Forward
The government can consider introducing measures to prevent the misuse of the Act, provide greater clarity on the definition of economic offenses, and improve the efficiency of the legal system to ensure speedy trials. India can improve transparency and accountability in its financial system to prevent FEOs from exploiting loopholes and engaging in illegal activities.
Why In News
During the first anti-corruption working group meeting in Delhi, India urged G20 countries to take coordinated and speedy action to extradite fugitive economic offenders and recover their assets. The country emphasized the need for a multilateral approach to tackle economic crimes both domestically and internationally.
MCQs about India’s Fugitive Economic Offenders Act
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What is the primary objective of India’s Fugitive Economic Offenders Act, 2018?
A. To provide amnesty to economic offenders who have fled the country.
B. To confiscate the assets of high-value economic offenders who have fled the country.
C. To allow economic offenders to return to the country without prosecution.
D. To increase corruption in the Indian banking sector.
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Who is defined as a ‘fugitive economic offender’ (FEO) under the Act?
A. An individual against whom a warrant of arrest has been issued in relation to any offense.
B. An individual who has left the country or refuses to return to face criminal prosecution.
C. An individual who has committed any economic offense.
D. An individual who has been convicted of an economic offense.
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What is the significance of India’s Fugitive Economic Offenders Act, 2018?
A. It helps in the extradition of economic offenders who have fled the country.
B. It has increased corruption in the Indian banking sector.
C. It allows for amnesty to economic offenders who have fled the country.
D. It promotes economic offenses in the country.
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What are some criticisms of India’s Fugitive Economic Offenders Act, 2018?
A. It violates the right to life.
B. It does not require authorities to acquire a search warrant.
C. It permits the exclusion of properties in which third parties may have an interest.
D. All of the above.
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