Govt promulgates Fugitive Economic Offenders Ordinance 2018

Speed Post News Network

New Delhi : Fugitive Economic Offenders Ordinance, 2018, has come into force as the President of India has given his assent to the Union Cabinet’s decision to promulgate the said Ordinance. Earlier, the Union Cabinet, at its meeting held on April 21, 2018, had decided to approve the proposal of the Ministry of Finance to promulgate the Fugitive Economic Offenders Ordinance, 2018.

Fugitive Economic Offenders Ordinance, 2018, lays down the measures to empower Indian authorities to attach and confiscate proceeds of crime associated with economic offenders and the properties of the economic offenders and thereby deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts, according to a PIB release.

The need for the Ordinance has arisen as there have been instances of economic offenders fleeing the jurisdiction of Indian courts anticipating the commencement, or during the pendency, of criminal proceedings. The absence of such offenders from Indian courts has several deleterious consequences – first, it hampers investigation in criminal cases, second, it wastes precious time of courts of law, third, it undermines the rule of law in India.

The existing civil and criminal provisions in law are not adequate to deal with the severity of the problem. In view of the above context, a Budget announcement was made by the Government in the Budget 2017-18 that the Government was considering to introduce legislative changes or even a new law to confiscate the assets of such absconders till they submit to the jurisdiction of the appropriate legal forum. Pursuant to the above announcement, the Fugitive Economic Offenders Bill, 2018, was introduced in LokSabha on March 12, 2018.

The Fugitive Economic Offenders Bill, 2018, was listed for consideration and passing in LokSabha on many occasions after its introduction. The LokSabha has since been adjourned sine die and both the Houses of Parliament were prorogued on April 6, 2018.

In order to address the deficiency in the present laws and lay down measures to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts, the Ordinance has been promulgated. The Ordinance makes provisions for a Court (‘Special Court’ under the Prevention of Money-laundering Act, 2002) to declare a person as a Fugitive Economic Offender.

A Fugitive Economic Offender is a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution. A scheduled offence refers to a list of economic offences contained in the Schedule of this Ordinance. Further, in order to ensure that Courts are not over-burdened with such cases, only those cases where the total value involved in such offences is Rs 100 crore or more, is within the purview of this Ordinance.