Preliminary Provisions
The Act extends to the whole of India
and came into force on April 21, 2018. It defines key terms such as
"Administrator," "fugitive economic offender,"
"proceeds of crime," and "Scheduled Offence." A fugitive
economic offender is an individual against whom a warrant for arrest has been
issued by any Court in India for a Scheduled Offence, and who has either left
India to avoid prosecution or refuses to return to face prosecution.
Declaration and Confiscation
Chapter II of the Act outlines the
process for declaring an individual as a fugitive economic offender and the
subsequent confiscation of property. The Director or any officer not below the
rank of Deputy Director can file an application in the Special Court to declare
an individual as a fugitive economic offender. The application must contain
reasons for the belief, information about the offender's whereabouts, and a
list of properties believed to be proceeded of crime.
Powers and Procedures
The Act empowers the Director and
other officers with powers akin to those of a civil court under the Code of
Civil Procedure, 1908, for the purposes of this Act. These powers include
discovery and inspection, enforcing attendance, compelling production of
records, and receiving evidence on affidavits.
The Act also provides for the power
of survey, search, and seizure. Officers can enter any place if they believe
that an individual may be a fugitive economic offender. They can inspect records,
make inventories, and record statements.
Notice and Hearing
The Special Court is required to
issue a notice to the alleged fugitive economic offender and any other person
who has an interest in the property mentioned in the application. The notice
requires the individual to appear at a specified place and time, failing which
they will be declared a fugitive economic offender, and their property will be
confiscated. If the individual appears in person, the Special Court may
terminate the proceedings. If the individual fails to appear but enters
appearance through counsel, the court may give a period of one week to file a
reply. If the individual fails to enter appearance altogether, the court may
proceed to hear the application after recording reasons.
The Act stipulates that if an
individual fails to appear in person or through counsel, the Special Court may
proceed to hear the application, provided it is satisfied that the notice has
been served or that the individual has evaded service.
Declaration of Fugitive Economic
Offender
The Special Court may declare an
individual as a fugitive economic offender if it is satisfied that the
conditions specified in the Act are fulfilled. The declaration will also
include confiscation of properties and proceeds of crime.
Supplementary Application
The Director may file a supplementary
application to include additional properties for confiscation. The Special
Court may modify its orders accordingly.
Chapter III of the Act covers
miscellaneous provisions, including:
Rules of Evidence: The Act outlines
the rules of evidence applicable in proceedings under this Act.
Appeal: Provisions for appeal against
the orders of the Special Court are included.
Bar of Jurisdiction: No civil court
shall have jurisdiction in respect of any matter which the Special Court is
empowered to determine.
Protection of Action Taken in Good
Faith: Protects officers for actions taken in good faith in the exercise of
powers conferred.
Offenses under the Limited Liability
Partnership Act, 2008: Carrying on business with the intent or purpose to
defraud creditors of the Limited Liability Partnership or any other person or
for any other fraudulent purpose.
Offenses under the Foreign
Contribution (Regulation) Act, 2010: Penalty for article or currency or
security obtained in contravention of section 10 and punishment for
contravention of any provision of the Act.
Offenses under the Companies Act,
2013: Offer or invitation for subscription of securities on private placement,
repayment of deposits, etc., accepted before the commencement of the Companies
Act, 2013, and punishment for contravention of section 73 or section 76 of the
Companies Act, 2013.
Offenses under the Central Goods and
Services Tax Act, 2017: Punishment for certain offenses under sub-section (5)
of section 132.
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