(The Gist of PIB) Mehul Choksi ‘fugitive and absconder’: ED tells Bombay HC [JUNE-2019]

    (The Gist of PIB) Mehul Choksi ‘fugitive and absconder’: ED tells Bombay HC [JUNE-2019]

Mehul Choksi ‘fugitive and absconder’: ED tells Bombay HC

• Enforcement Directorate told Bombay High Court that Diamond trader Mehul Choksi, accused in the multi-crore Punjab National Bank scam, is a fugitive economic offender.

Fugitive Economic Offenders Act (FEOA): Salient features

• The FEOA became a law on July 31, 2018.
• In January 2019, Absconding liquor baron Vijay Mallya became the first person to be declared a fugitive economic offender by the special court hearing cases under the FEOA.
• Now, government can now confiscate all his properties.

Objectives:

• To deter economic offenders from avoiding the process of Indian law by remaining outside the jurisdiction of Indian courts.
• To ensure that fugitive economic offenders return to India to face the action in accordance with law.

Defining Fugitive economic offender (FEO):

• FEO is defined as an individual who has committed offences involving an amount of 100 crore rupees or more and has ran away from India to avoid criminal prosecution.
• A special court will be established under the Prevention of Money-laundering Act, 2002 to declare a person as a Fugitive Economic Offender.
• Special courts can direct the Central government to seize assets of fugitive economicoffender including those that are proceeds of the crime.
• Appeals against the orders of the special court will lie before the High Court.

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Courtesy: PIB