With reference to the Fugitive Economic Offenders Act, 2018, consider the following statements.

1. A Fugitive Economic Offender is a person against whom an arrest warrant has been issued for committing any offence listed in the Act, and the value of the offence is at least Rs 1000 crore.

2. The Department of Economic Affairs in collaboration with the Ministry of Finance may declare a person as a Fugitive Economic Offender.

3. There is provision of confiscation of properties of a Fugitive Economic Offender which are proceeds of crime, Benami properties and any other properties both in India and abroad.

Which of the statements given above is/are correct?

Solution

● Statement 1 is incorrect: Fugitive economic offender (FEO): An FEO is a person against whom an arrest warrant has been issued for committing any offence listed in the Act, and the value of the offence is at least Rs 100 crore. Further, the person has left the country and refuses to return, in order to avoid facing prosecution. The Act lists 55 economic offences in the Schedule. ● Statement 2 is incorrect: The authorities appointed under the Prevention of Money Laundering act, 2002, may file an application before a Special Court (designated under the PMLA) to declare a person an FEO. The Special Court will issue a notice to the individual: (i) requiring him to appear at a specified place on a date which is at least six weeks after the issue of notice, and (ii) stating that a failure to appear will result in him being declared an FEO. Notice may also be served at the individual’s email address recorded in the PAN or Aadhaar databases. ● Statement 3 is correct: The Special Court may confiscate properties of an FEO which are proceeds of crime, benami properties, or any other properties. These properties may be in India or abroad. The Special Court may exempt certain properties from confiscation where any other person has a legitimate interest in them. Upon confiscation, all rights and titles in the property will vest in the central government, free from encumbrances (claims or rights in the property). The central government may dispose of these properties after 90 days.