AN UNSUCCESSFUL ATTEMPT: PERUSAL OF THE FUGITIVE ECONOMIC OFFENDERS ACT, 2018

Abstract

In recent times, India has witnessed an influx of bank de-fraud cases and other economic crimes, in which the offenders escape to foreign jurisdictions, hence making the procedures of prosecution cumbersome and sometimes impossible. This necessitated the Government to expedite the formulation of a specific legislation, in order to deter the economic offenders from fleeing the country. To this effect, the Indian Government introduced The Fugitive Economic Offenders Act of 2018, which aimed at bringing in stringent laws, to protect the disruption in the Indian economy caused by economic crimes. A detailed perusal of the legislation, exposes the various provisions that are flawed, arbitrary and that are in contravention with the principles of natural justice. This subsequently questions its constitutional validity. This article attempts to provide a critical analysis of the intrinsic defects in the said Act which need to be revisited and, it also provides specific recommendations for the effective implementation of the Act. 

On February 14, 2018, the Punjab National Bank (PNB), Mumbai reported that it had detected some ‘fraudulent and unauthorized transactions’. In response to which, investigations revealed the name of a billionaire jeweler Nirav Modi along with the associated firms and people who were alleged to have caused the economic fraud to the tune of $1771.7 million (approximately). Nirav Modi fled from India on 1st January 2018 and hasn’t returned to India, despite the issuance of multiple notices and non-bailable warrants. Therefore, as per the Act, he is an alleged ‘fugitive economic offender’. On July 25, 2018, V.K.Singh, the Union Minister of State for External Affairs, submitted a list with the names of 31 Indians living abroad, like Mehul Choksi and Vijay Mallya, who have been charged for causing financial irregularities and criminal offences.