The aim of the Fugitive Economic Offenders Act, 2018 is to deter the fugitive economic offenders to submit to the Indian jurisdiction by confiscating their properties and disposing them off to get back the amount of economic loss suffered by the banks, financial institutions and creditors.

1. A Critical Analysis of the
Fugitive Economic Offenders Act
2018
❏ Parapathi Manasa Reddy
LLM
NALSAR University of Law

2. Research Question:
❏ Can the Act effectively bringing back the fugitive economic offenders to the
jurisdiction of Indian courts?

3. What led to the passing of the Act?
❏ There have been rise in the number
of economic offenders fleeing the
jurisdiction of the Indian Courts
❏ Unpaid debt is a huge burden to the
PSB as it increases their NPA
.

4. What are the Consequences of the offenders
fleeing the country?
❏ Hampers Investigation in
criminal cases
❏ Wastes precious time of the
courts
❏ Weakens people's faith in the
government
❏ Undermines rule of law within
the country

5. Basis of the Act:
❏ United Nations Convention against Corruption (ratified by India in 2011): It
provides for non- conviction based asset confiscation for corruption related
cases.
❏ To provide for measures to deter fugitive economic offenders from
evading the process of law in India by staying outside the jurisdiction of
Indian courts, to preserve the sanctity of the rule of laww in India and for
matters connected therewith or incidental thereto..
Object of the Act:

6. Don't provisions already exist to confiscate
assets of offenders?
❏ Prevention of Money-Laundering Act, 2002
❏ SARFAESI Act, 2002
❏ Insolvency and Bankruptcy Code, 2016
❏ Recovery of Debts due to Banks and Financial Institutions Act, 1993
❏ Foreign Exchange Management Act, 1999
❏ Code of Criminal Procedure, 1973
Section 22 of the Fugitive Economic Offenders Act, 2018: “The provisions of this
Act shall be in addition to and not in derogation of any other law for the time
being in force”

7. Who is a Fugitive Economic Offender (FEO)?
Section 2 (f): A person against whom an arrest warrant has been issued in:
❏ Respect of a scheduled offence
❏ Who has left India to face criminal prosecution
❏ Refuses to return India to face criminal prosecution
Only those cases where the total value involved in such offence is 100 Crore
rupees or more
Analysis of the Act

8. How will the Act deal with the FEO?
❏ Application for declaration of Fugitive Economic Offender (Sec.4)
❏ Attachment of Property (Sec.5)
❏ Issue of Notice (Sec.10)
❏ Termination of Proceedings (Sec.11)
❏ Confiscation of Property (Sec.12)
❏ Appointment of Administrator (Sec.15)

9. Probable Problematic Areas in the Act:
❏ Bar on defending civil claims (Sec.14)
❏ Sale of property without trial (Sec.15)
❏ Finding suitable buyer and disposal of properties
❏ Deterioration in value of seized assets
❏ Use of sale proceeds from confiscated property not specified
❏ Confiscation of properties situated abroad
❏ Threshold of 100 Crores (Sec. 2(m))

12. Extradition of Fugitives
❏ Cannot force offender to return, more
dependant on extradition process
❏ Extradition in India is governed by the
Indian Extradition Act, 1962
❏ Signed extradition treaties with 48
countries

13. Conclusion:
❏ Reach out to different countries for sovereign arrangement and extradition
treaties to enforce provisions under the Act
❏ Recheck the provisions which are ambiguous, violative of the fundamental
rights

14. THANK YOU