Consider the following statements regarding the Fugitive Economic Offenders Act :
1. A Fugitive Economic Offender (FEO) is a person who has fled the country and against whom an arrest warrant has been issued for involvement in economic offenses involving at least Rs. 100 crores.
2. Under the Act, authorities-are empowered to confiscate assets even when no conviction has been obtained.
3. Financial Intelligence Unit is the nodal agency to implement the Act.
How many of the statements given above are correct?
Options
A1 and 2 only
B2 and 3 only
C1 and 3 only
DAll 1, 2 and 3
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Correct Answer
A1 and 2 only
Model Answer
The Fugitive Economic Offenders Act, 2018 is a legislative measure introduced in India to address the issue of economic offenders who evade the legal system by fleeing the country.
An individual who has been accused of committing economic offenses involving a value of ₹100 crore (₹1 billion) or more. Hence, statement 1 is correct.
The individual must have fled India to avoid legal proceedings or must be absconding.
Once declared a fugitive economic offender, the individual’s properties can be seized and confiscated. This includes movable and immovable assets, both in India and abroad. Hence, statement 2 is correct.
The act provides for the attachment of assets before the judgment to prevent their disposal.
The Enforcement Directorate, along with other enforcement agencies, is empowered to investigate and take action under this act. Hence, statement 3 is incorrect.
The declared fugitive has the right to appeal against the order of confiscation before a higher court.
The Special Court’s orders can be challenged in the High Court.
A newspaper clipping headed Heat on Economic Absconders, summarising the Fugitive Economic Offenders Bill: its purpose, what the government will do and the bill highlights.
