Fugitive Economic Offenders Ordinance, 2018 : Overview

Bhuwan Prakash

In view of the corporate frauds occurring in Indian Economy, a Law has been framed for those defaulters who fled away after making defaults or loots causing great hardship to others. This write-up highlights the key provisions introduced by Fugitive Economic Offenders Ordinance, 2018.

1. Introduction

The frequent corporate frauds and scams taking place in India not only led to great loss being suffered by innocent investors and stakeholders but also resulted in problems faced by investigating authorities due to absence of offenders, who fled away discouraging the law of land. Seeing the need of law to defy such menace, the Fugitive Economic Offenders Bill, 2018 was introduced in Lok Sabha on 12-3-2018, which though not passed by the Houses of Parliament, was approved by the Union Cabinet of India and being promulgated as the Fugitive Economic Offenders Ordinance, 2018 by the President on 21-4-2018. This Ordinance would empower the authorities (appointed for the purposes of the Prevention of Money Laundering Act, 2002) to attach and confiscate properties and assets of economic offenders, who fled the country to avoid criminal prosecution, and declare them as fugitive economic offenders.

2. Fugitive Economic OffenderMeaning of

The term 'Fugitive Economic Offender' has been defined under clause (f) of section 2(1) of the Fugitive Economic Offenders Ordinance, 2018. Accordingly, Fugitive Economic Offender means any individual against whom a warrant for arrest in relation to a scheduled offence has been issued by any Court in India, who --