Fugitive Economic Offender

Fugitive Economic Offender - Context Theory

Mr Vijay Mallya has been prosecuted under the Fugitive Economic Offenders Act. Through this act he has become the first person to be acknowledged as a fugitive economic offender. This was part of a directive against Mallya by the Prevention of Money Laundering Act (PMLA) court officials. It falls under Section 2F of FEOA.


Implications

The result of this is that the investigating agents can take any property from Mallya, even when this property is not clearly linked with the case.

Background

This decision comes in the face of a request by the Enforcement Directorate. This request was submitted to the special PMLA court in order to define Mallya as a fugitive economic offender.

Definition: The definition of a fugitive economic offender is as follows – (It is possible to define an individual as a fugitive economic offender since August last year.)
A person falls under this definition if there is an outstanding arrest warrant for them for involvement in economic crimes involving a minimum of Rs. 100 crore. The final criteria is that they have left India to avoid prosecution.

The procedure:

The agencies who are looking into these crimes need to file an application in the PMLA court that details the property to be confiscated and any further information about where the person involved may be. The court then issues an announcement that the person involved should appear on a specific date at a specific location a minimum of 6 weeks from the announcement. The case is dropped is the individual appears. If they don’t, they are classified as a fugitive economic offender using the evidence already gathered to prove this. Within the act it is written that the individual has 30 days from when this announcement is made to contest it.

Important Links (External)

  1. The Fugitive Economic Offenders Bill, 2018. - PRS Legislative Research
  2. Fugitive Economic Offender Bill 2017.
  3. Fugitive Economic Offender Act 2018.

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