Q1) present regulations to combat fugitive economic crimes in India.

Examine Fugitive Economic

Offenders Bill is trying to fill and analyze its effectiveness ? (250 words)

key points -
1. in recent years – no. of economic offenders - fled from country - escaped judicial system of the
country
2. investigative agencies - regret that - existing legislations are ill equipped - to deal with the
situation where the offenders flee country
3. Examine whether any legislative void exists in country
4. Mention that the absence of offenders during investigations poses problems for the
probing agencies, and discuss the deterrent effect that the legislation creates
5. main features of the Bill and what the Bill is trying to achieve
6. expected impact - to re-establish the rule of law as the accused will be forced to return to India
and face trial for his offences
7. help banks and other financial institutions to achieve higher recovery from financial defaults
committed by such fugitive economic offenders
8. improving the financial health of such institutions
9. Examine the Bill from constitutional, practical, legal perspectives and how the Bill would
stand the test of time
fugitive economic offenders bill 2018 comes in the wake of several high profile industrialists like Vijay
Mallya, and diamantaires Nirav Modi and Mehul Choksi duping the banking system and evading the
process of law in India by staying outside the jurisdiction of Indian courts
regulations already exist to combat fugitive economic crimes-

existing laws on economic offences (such as the Prevention of Money Laundering Act, 2002, among
others) provide for confiscation as a punishment for the offence committed
but no deterrence against absconding from Indian jurisdiction for the accused
Fugitive economic offenders bill will address this gap
There
instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the
commencement, or during the pendency, of criminal proceedings
absence of such offenders from Indian courts has several deleterious consequences
it hampers investigation in criminal cases
.
it wastes precious time of courts of law
it undermines the rule of law in India
So the bill ensures to fill these gaps
Fugitive economic offenders bill :-
to empower the authorities to confiscate and sell assets of economic offenders, especially bank
fraudsters and scamsters who have fled the country
paves the way for confiscation of all assets, including benami assets, both within and outside the
country, of declared economic offenders
will apply for economic offences with monetary value in excess of Rs.100 crore
All cases under the proposed law will be tried under the PMLA Act
administrator will sell the fugitive’s properties to pay off the lenders
The proposed law will have an overriding effect over all other pieces of legislation
offender will not be able to pursue any civil cases in India.

Bill aims to curb the practice of evading the criminal prosecution by the economic offenders who flee from
the country to stay out of the jurisdiction of Indian courts
Bill will give the right to the government to confiscate the property of such economic offenders in India and
abroad
Bill will also be applicable on the proxy-owned properties of the economic offenders
Bill defines the economic offenders as those against whom a legal warrant has been issued, but they refuse
to adhere to the summons of the legal authorities
law balances itself with a provision that allows the accused to file an appeal in the High Court to state their
case
law balances itself with a provision that allows the accused to file an appeal in the High Court to state their
case.
Bill keeps the banks and other financial institutions at the Centre and seeks to help them recover
the amount.
Bill will only be used for economic offences over Rs 100 crores
Bill makes provisions for a Court (‘Special Court’ under the Prevention of Money-laundering Act,
2002) to declare a person as a Fugitive Economic Offender
Merits :-
Strong deterrent to people fleeing the country after committing a crime
bill is expected to plug gaps and provide a higher deterrent effect on economic offenders
economic offences involving non-repayment of bank loans impact the financial health of the banking sector
and erode the government’s declared fight against corruption
This can be checked now
Bill is expected to re-establish the rule of law with respect to the fugitive economic offenders as they would
be forced to return to India to face trial for scheduled offences
help the banks and other financial institutions to achieve higher recovery from financial defaults committed
by such fugitive economic offenders, improving the financial health of such institutions
special forum to be created for expeditious confiscation of the proceeds of crime in India or abroad
would coerce the fugitive to return to India to submit to the jurisdiction of Courts in India to face the law in
respect of scheduled offences
Demerits :-
some concerns with new law -blanket ban on offenders challenging confiscation of their properties through
civil suits,
- sale of property without trial,
- deterioration in value of seized assets
- finding suitable buyers

absolute ban is contrary to the basic tenets of justice and fair play - also violates Indian Constitution.
Sale of property of a fugitive economic offender without adjudicating - after trial - whether or not the
said person is actually liable for the offence- is violation of the settled principle -that one is
considered innocent unless proven guilty
Anyone can be prosecuted or property can be acquired without the person being found guilty. These
provisions are against the fundamental rights
Being an ex-post facto regulation, FEOA cannot resolve the ongoing crisis/mess, which took place
before the new act came into being

Assets confiscated by enforcement agencies and courts are termed as distressed properties, and
seldom find buyers.
Ex- Sahara’s Amby Valley - which despite efforts by Bombay high court’s official liquidator- not
able to find suitable buyers for almost a year
Experts say -flaws in the proposed legislation - can be used to challenge the law in courts