Economic offences relate to fraud, counterfeiting, money-laundering, and tax evasion, among others.  Currently, various laws contain provisions to penalise such offences.  These include: (i) the Prevention of Money-Laundering Act (PMLA), 2002 which prohibits money-laundering, (ii) the Benami Properties Transactions Act, 1988 which prohibits benami transactions, and (iii) the Companies Act, 2013 which punishes fraud and unlawful acceptance of deposits.   Other laws such as the Indian Penal Code, 1860 and the Code of Criminal Procedure, 1973 also cover economic offences, such as forgery and cheating.

• Fugitive Economic Offenders Act, 2018:
  • It seeks to confiscate properties of economic offenders who have left the country to avoid facing criminal prosecution or refuse to return to the country to face prosecution.
  • Fugitive Economic Offender (FEO): A person against whom an arrest warrant has been issued for committing an offence listed in the Act and the value of the offence is at least Rs. 100 crore.
  • Some of the offences listed in the act are:
    • Counterfeiting government stamps or currency.
    • Cheque dishonour.
    • Money laundering.
    • Transactions defrauding creditors.
• Declaration of a Fugitive Economic Offender:
  • After hearing the application, a special court (designated under the PMLA, 2002) may declare an individual as a fugitive economic offender.
  • It may confiscate properties which are proceeds of crime, Benami properties and any other property, in India or abroad.
  • Upon confiscation, all rights and titles of the property will vest in the central government, free from encumbrances (such as any charges on the property).
  • The central government may appoint an administrator to manage and dispose of these properties.
• Bar on Filing or Defending Civil Claims:
  • The Act allows any civil court or tribunal to prohibit a declared fugitive economic offender from filing or defending any civil claim.
  • Further, any company or limited liability partnership where such a person is a majority shareholder, promoter, or a key managerial person, may also be barred from filing or defending civil claims.
  • The authorities may provisionally attach properties of an accused, while the application is pending before the Special Court.
• Powers:
  • The authorities under the PMLA, 2002 will exercise powers given to them under the Fugitive Economic Offenders Act.
  • These powers will be similar to those of a civil court, including the search of persons in possession of records or proceeds of crime, the search of premises on the belief that a person is an FEO and seizure of documents.
• Prevention of Money Laundering Act (PMLA):
  • Money Laundering:
    • Money laundering is concealing or disguising the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources. It is frequently a component of other, much more serious, crimes such as drug trafficking, robbery or extortion.
    • According to the International Monetary Fund (IMF), global Money Laundering is estimated between 2 to 5% of World GDP.
  • Salient Features:
    • Punishment for money-laundering:
      • Money laundering is punishable with rigorous imprisonment for a minimum of 3 years and a maximum of 7 years and Fine.
      • If the crime involves the Narcotic Drugs and Psychotropic Substances Act, 1985, the punishment can go up to 10 years, along with fine.
    • Powers of attachment of tainted property:
      • The property is believed to be "proceeds of crime" and can be provisionally attached for 180 days. Such an order is required to be confirmed by an independent Adjudicating Authority
    • The Enforcement Directorate (ED) is responsible for investigating offences under the PMLA.
      • Also, the Financial Intelligence Unit – India (FIU-IND) is the national agency that receives, processes, analyses and disseminates information related to suspect financial transactions.
    • Burden of proof: A person, who is accused of having committed the offence of money laundering, has to prove that alleged proceeds of crime are in fact lawful property.