Fugitive Economic Offenders Act: Tightening the Noose on High-Value Economic Crimes
- vidyarthee2021
- Jul 8
- 2 min read
A Delhi court has declared a U.K.-based arms consultant as a Fugitive Economic Offender (FEO) under the Fugitive Economic Offenders Act, 2018, marking another high-profile case under this law.
What is the Fugitive Economic Offenders Act, 2018?
Enacted to deter economic offenders from evading Indian legal jurisdiction by staying abroad.
Fugitive Economic Offender (FEO):
An individual against whom an arrest warrant has been issued for a scheduled offence.
Has either left India to avoid prosecution or refuses to return to face legal proceedings.
Key Features
Scheduled Offence:
Any offence listed under the Act's Schedule, involving economic crimes worth ₹100 crore or more.
Declaration Process:
Application must be filed by an authorised authority (e.g., ED) before a Special Court.
Special Court = Designated Sessions Court under the Prevention of Money-Laundering Act, 2002.
Consequence of Declaration:
Enables confiscation of properties, including benami assets, even without conviction.
Why It Matters for UPSC
Significant for GS Paper 2 (Governance, Transparency, Accountability) and GS Paper 3 (Economic offences).
Related to topics like Money Laundering, Criminal Justice Reforms, and Judicial Framework.
UPSC Prelims MCQ
Q. With reference to the Fugitive Economic Offenders Act, 2018, consider the following statements:
Only individuals involved in offences exceeding ₹500 crore can be declared FEOs.
The declaration of a person as a Fugitive Economic Offender can be made only by a Special Court.
The Act allows confiscation of properties even before conviction.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
✅ Answer: B. 2 and 3 only
Explanation:
Statement 1 is incorrect: The threshold is ₹100 crore, not ₹500 crore.
Statement 2 is correct: Declaration is made by a Special Court.
Statement 3 is correct: The law permits confiscation of properties pre-conviction.
UPSC Mains Question (GS Paper 2)
“The Fugitive Economic Offenders Act, 2018 is a critical tool in India’s fight against economic crimes, but it also raises concerns about due process.” Critically examine.
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