×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

GS-III :
  • 13 July, 2020

  • 5 Min Read

Fugitive Economic Offenders Act, 2018

Fugitive Economic Offenders Act, 2018

Paper-3- Economics (Mains)

Recently, assets worth Rs. 329.66 crore of the Punjab National Bank (PNB) fraud mastermind Nirav Modi have been confiscated under Section 12(2) and (8) of the Fugitive Economic Offenders Act, 2018.

  • In this money laundering case, the Enforcement Directorate (ED) has so far attached properties valued at Rs. 2,348 crore.
  • The properties were earlier attached under the Prevention of Money Laundering Act, (PMLA) 2002.

  • To proactively detect such frauds, the Reserve Bank of India (RBI) is in the process of putting together an exclusive wing for banking fraud oversight. This wing will have teams for meta-data processing and analysis, artificial intelligence analysis units, as well as proactive risk assessment cells.

Fugitive Economic Offenders Act, 2018: It seeks to confiscate properties of economic offenders who have left the country to avoid facing criminal prosecution or refuse to return to the country to face prosecution.

Fugitive economic offender: A person against whom an arrest warrant has been issued for committing an offence listed in the Act and the value of the offence is at least Rs. 100 crore.

Some of the offences listed in the act are:

      • Counterfeiting government stamps or currency.
      • Cheque dishonour.
      • Money laundering.
      • Transactions defrauding creditors.

Declaration of a Fugitive Economic Offender:

  • After hearing the application, a special court (designated under the PMLA, 2002) may declare an individual as a fugitive economic offender.
  • It may confiscate properties which are proceeds of crime, Benami properties and any other property, in India or abroad.
  • Upon confiscation, all rights and titles of the property will vest in the central government, free from encumbrances (such as any charges on the property).
  • The central government may appoint an administrator to manage and dispose of these properties.

Bar on Filing or Defending Civil Claims:

  • The Act allows any civil court or tribunal to prohibit a declared fugitive economic offender, from filing or defending any civil claim.
  • Further, any company or limited liability partnership where such a person is a majority shareholder, promoter, or a key managerial person, may also be barred from filing or defending civil claims.
  • The authorities may provisionally attach properties of an accused, while the application is pending before the Special Court.

Powers:

The authorities under the PMLA, 2002 will exercise powers given to them under the Fugitive Economic Offenders Act. These powers will be similar to those of a civil court, including the search of persons in possession of records or proceeds of crime, the search of premises on the belief that a person is an FEO and seizure of documents.

Source: TH


An Assessment of Extreme Weather Events in India

An Assessment of Extreme Weather Events in India by CSE According to a recent report by the Centre for Science and Environment (CSE), India will experience some form of natural disaster almost every day in the first nine months of 2022. Between January 1 and September 30, 2022, India recorded 241 extreme weather events. About the evalu

India and Norway in the Green Maritime Sector

India and Norway in the Green Maritime Sector The 8th Norway-India Joint Working Group Maritime meeting was recently held in Mumbai. Indo-Norway collaboration in the GREEN MARITIME Sector The history of maritime trade with Norway dates back to 1600. Norway has technical expertise in the maritime sector, and India has enormous potentia

Arittapatti Village:Biodiversity Heritage Site

Arittapatti Village: Biodiversity Heritage Site In accordance with Section 37 of the Biodiversity Diversity Act, 2002, the Government of Tamil Nadu published a notification designating Arittapatti Village in Melur in the Madurai district as a biodiversity heritage site. The Biodiversity Heritage site is the first site to be nominated

Food-Animal Farming and Antimicrobial Resistance

Food-Animal Farming and Antimicrobial Resistance Animal health issues in factory farming have a severe impact on food safety, the environment, and the climate, which can result in antibiotic resistance (AMR). Farming of pigs, cows, and birds in close quarters is known as factory farming or intensive food-animal farming. These are industr

Report On Amazon Rainforest

Report On Amazon Rainforest Recent research from the World Wildlife Fund (WWF) titled "Living Amazon Report" 2022 claims that 35% of the rainforest has either completely disappeared or is severely degraded. The study was presented at the United Nations Framework Convention on Climate Change's 27th Conference of Parties (COP27)

Toppers

Search By Date

Newsletter Subscription
SMS Alerts