The Fugitive Economic Offenders Bill, 2017
WHEN THIS BILL WAS INITIATED ? After it was known that Vijay Mallya had fled the country to avoid being arrested for economic fraud this idea was mooted.
WHO MOOTED ? Finance Minister Arun Jaitley had announced in last year’s Union Budget
WHAT IS THE INTENDED EFFECT ? A law that would allow the state to take possession of properties belonging to such offenders.
WHAT MADE THE GOVT. TO APPROVE THE BILL NOW ? After the Nirav Modi–PNB fraud worth more than ₹12,000 crore, the Union Cabinet has approved the Fugitive Economic Offenders Bill, 2017.
WHAT THE BILL AIMS TO DO ? The Bill aims to stop economic offenders who leave the country to avoid due process.
WHAT ARE THE OFFENCES THAT FALL UNDER ITS PURVIEW ? Offences involving amounts of ₹100 crore or more fall under the purview of this law.
NOW WHAT ARE THESE ECONOMIC OFFENCES ? Economic offences are those that are defined under the
Indian Penal Code,
the Prevention of Corruption Act,
the SEBI Act, the Customs Act,
the Companies Act,
Limited Liability Partnership Act, and
the Insolvency and Bankruptcy Code.
Who is a ‘fugitive economic offender’?
RELEVANT SECTION : Section 4 of the law
Fugitive economic offender = any individual against whom a warrant for arrest issued by any court in India,
(i) leaves India so as to avoid criminal prosecution; or
(ii) refuses to return to India to face criminal prosecution.
CONDITION : The warrant must be in relation to a scheduled offence
WHAT IS SCHEDULED OFFENCE ? Offence specified in the schedule of the Act.
HOW A FUGITIVE CAN BE DECLARED?
STEP 1 : A Director, appointed by the central government, will have to file an application to a Special Court to declare a person as a ‘fugitive economic offender.
STEP 2 : The Court will issue a notice to the person named a ‘fugitive economic offender’.
STEP 3 : Within six weeks from the date of notice, the person will have to present themselves at “a specified place at a specified time”.
STEP 4 : If the offender fails to do so, they will be declared a ‘fugitive economic offender’
RESULT : Their properties as listed in the Director’s application will be confiscated.
RELIEF ? No possible relief : Relevant section : Section 11 of the Act disqualifies those declared as offenders from either filing or defending a civil claim in court.
HOW THIS IS RELATED TO UPSC
Can be asked in prelims too
Sample : Which of the statements is/ are correct in relation to The Fugitive Economic Offenders Bill, 2017
Offences involving amounts of ₹100 crore or more fall under the purview of this law.
The schedule offence alone fall under the purview of this law
IPC offences alone covered in this law
Economic offences of any amount is covered in this law
1 and 3
1 and 2
Correct answer : 1 and 2
GENRAL STUDIES :
Related with economics
UPSC LAW OPTIONAL
RELATED TO LAW OF CRIMES : The schedule offences are from IPC , PCRA etc all from UPSC Law Optional syllabus
RELATED TO INTERNATIONAL LAW: extradition