LOK SABHA

————

The following Bills were introduced in Lok Sabha on 12th March, 2018:—

BILL NO. 72 OF 2018

A Bill further to amend the Chit Funds Act, 1982.

BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—

1. (1) This Act may be called the Chit Funds (Amendment) Act, 2018.

(2) It shall come into force on such date as the Central Government may, by

notification in the Official Gazette, appoint.

2. In the Chit Funds Act, 1982 (hereinafter referred to as the "principal Act"), in

section 2, in clause (b), after the word "kuri", the words, "fraternity fund" shall be inserted.

3. For section 11 of the principal Act, the following section shall be substituted,

namely:—

‘11. (1) No person shall carry on chit business unless he uses as part of his

name any of the words "chit", "chit fund", "chitty", "kuri" or "fraternity fund" and

no person other than a person carrying on chit business shall use as part of his name

any such word.

Short title and

commencement.

Amendment

of section 2.

Substitution of

new section

for section 11.

40 of 1982.

Use of words

"chit", "chit

fund", "chitty"

"kuri" or

"fraternity

fund".

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EXTRAORDINARY

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PART II — Section 2

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PUBLISHED BY AUTHORITY

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No. 6] NEW DELHI, MONDAY, MARCH 12, 2018/PHALGUNA 21, 1939-40 (SAKA)

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Separate paging is given to this Part in order that it may be filed as a separate compilation.

REGISTERED NO. DL—(N)04/0007/2003—18

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(2) Where at the commencement of this Act,—

(a) any person is carrying on chit business without using as part of his

name any of the words specified in sub-section (1); or

(b) any person not carrying on chit business is using any such word as

part of his name,

he shall, within a period of one year from such commencement, add as part of his name

any such word or, as the case may be, delete such word from his name:

Provided that the State Government may, if it considers it necessary in the public

interest or for avoiding any hardship, extend the said period of one year by such

further period or periods not exceeding one year in the aggregate.’.

4. In section 16 of the principal Act, in sub-section (2), after the words "two

subscribers", the words "present in person or through video conferencing duly recorded by

the foreman" shall be inserted.

5. In section 17 of the principal Act, in sub-section (1),—

(i) after the words "at least two other subscribers who are present", the words

"in person or through video conferencing" shall be inserted;

(ii) the following proviso shall be inserted, namely:—

"Provided that where two subscribers required to be present under

sub-section (2) of section 16 are present through video conferencing, the foreman

shall have the minutes of the proceedings signed by such subscribers within a

period of two days of the date of the draw.".

6. In section 21 of the principal Act, in sub-section (1),—

(i) in clause (b), for the words "five per cent.", the words "seven per cent." shall

be substituted;

(ii) for clause (f), the following clauses shall be substituted, namely:—

"(f) to substitute subscribers in place of defaulting subscribers;

(fa) to exercise his right to lien against the credit balance in other

non-prized chits; and ".

7. In section 85 of the principal Act, in clause (b), for the words "one hundred rupees",

the words "such amount as may be specified, by notification in the Official Gazette, by the

State Government" shall be substituted.

Amendment

of section 16.

Amendment

of section 17.

Amendment

of section 21.

Amendment

of section 85.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

STATEMENT OF OBJECTS AND REASONS

The Chit Funds Act, 1982 was enacted to provide for the regulation of chit funds which

are indigenous business in India and have conventionally satisfied the financial needs of the

low-income households. The chit is a mechanism which combines credit and savings in a

scheme, in which a group of individuals come together for a pre-determined duration and

subscribe a certain sum of money by way of periodical instalments and each such subscriber,

in his turn as determined by lot or by auction or by tender or any other specified manner, gets

the collected sum. In this way, people who are in need of funds and those who want to save

are able to meet their requirements simultaneously.

2. In past, concerns had been expressed by various stakeholders regarding challenges

being faced by the chit business. Therefore, the Central Government constituted a Key

Advisory Group on Chit Funds to review the existing legal, regulatory and institutional

framework for Chit Funds and its efficacy and to suggest legal and regulatory initiatives

required for orderly growth of the said sector. The Key Advisory Group submitted its

recommendations relating to improvements in the institutional and legal structure to further

develop the chit business in order to reduce the regulatory burden of the chit business and

to protect the interest of the subscribers of the chits.

3. The Parliamentary Standing Committee on Finance (Sixteenth Lok Sabha), in its

twenty-first Report on Efficacy of Regulation of Collective Investment Schemes (CIS), Chit

Funds, etc., had also recommended to finalise the legislative and administrative proposals

for strengthening and streamlining of the registered Chit Fund sector. Further, the said

Committee, in its thirty-fifth Report on the Action Taken by the Government on the

Recommendations contained in the twenty-first Report, had recommended the need to quickly

firm up the legislative and administrative proposals for the Chit Funds sector.

4. In view of the above, it has been decided to amend the Chit Funds Act, 1982.

Accordingly, the Chit Funds (Amendment) Bill, 2018, inter alia, proposes—

(a) the use of “fraternity fund” also for chits by amending sections 2(b) and 11;

(b) to allow the mandatory presence of two subscribers, as required under

section 16(2), either in person or through video conferencing duly recorded by the foreman;

conferencing, the minutes of proceedings should be signed by them within two days;

(d) the increase of ceiling of foreman’s commission from five per cent. to seven per

cent. under section 21;

(e) to enable the foreman to have a right to lien for the dues from subscribers, so that

set-off is allowed by the chit fund for subscribers who have already drawn funds, so as to

discourage default by them;

(f) to amend section 85(b), so as to confer power upon the State Government to specify

the amount, by notification, up to which any chit fund shall be exempted under the said

section.

5. The Bill seeks to achieve the above objects.

NEW DELHI;

ARUN JAITLEY.

The 28th February, 2018.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

BILL NO. 79 OF 2018

A Bill to provide for measures to deter fugitive economic offenders from evading the

process of law in India by staying outside the jurisdiction of Indian courts, to preserve

the sanctity of the rule of law in India and for matters connected therewith or incidental

thereto.

BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Fugitive Economic Offenders Act, 2018.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification

in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and

any reference in any such provision to the commencement of this Act shall be construed as

a reference to the coming into force of that provision.

Short title,

extent and

commencement.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

2. (1) In this Act, unless the context otherwise requires,––

(a) “Administrator” means an Administrator appointed under sub-section (1) of

section 15;

(b) “benami property” and “benami transaction” shall have the same meanings

as assigned to them under clauses (8) and (9) respectively of section 2 of the Prohibition

of Benami Property Transactions Act, 1988;

which arrangements have been made by the Central Government with the Government

of such country through a treaty or otherwise;

(d) “Deputy Director” means the Deputy Director appointed under

sub-section (1) of section 49 of the Prevention of Money-laundering Act, 2002;

(e) “Director” means the Director appointed under sub-section (1) of section 49

of the Prevention of Money-laundering Act, 2002;

(f) “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—

(i) has left India so as to avoid criminal prosecution; or

(ii) being abroad, refuses to return to India to face criminal prosecution;

(g) “key managerial personnel” shall have the same meaning as assigned to it in

clause (51) of section 2 of the Companies Act, 2013;

(h) “notification” means a notification published in the Official Gazette and the

expression “notify” shall be construed accordingly;

(i) “person” includes—

(i) an individual;

(ii)a Hindu Undivided Family;

(iii) a company;

(iv) a trust;

(v) a partnership;

(vi) a limited liability partnership;

(vii) an association of persons or a body of individuals, whether

incorporated or not;

(viii) every artificial juridical person not falling within any of the preceding

sub-clauses; and

(ix) any agency, office or branch owned or controlled by any of the above

persons mentioned in the preceding sub-clauses;

(j) “prescribed” means prescribed by rules made under this Act;

(k) “proceeds of crime” means any property derived or obtained, directly or

indirectly, by any person as a result of criminal activity relating to a Scheduled Offence,

or the value of any such property, or where such property is taken or held outside the

country, then the property equivalent in value held within the country or abroad;

(l) “Schedule” means the Schedule appended to this Act;

(m) “Scheduled Offence” means an offence specified in the Schedule, if the total

value involved in such offence or offences is one hundred crore rupees or more;

(n) “Special Court” means a Court of Session designated as a Special Court

under sub-section (1) of section 43 of the Prevention of Money-laundering Act, 2002.

Definitions.

15 of 2003.

18 of 2013.

15 of 2003.

45 of 1988.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(2) The words and expressions used and not defined in this Act but defined in the

Prevention of Money-laundering Act, 2002 shall have the meanings respectively assigned to

them in that Act.

3. The provisions of this Act shall apply to any individual who is, or becomes, a

fugitive economic offender on or after the date of coming into force of this Act.

CHAPTER II

DECLARATION OF FUGITIVE ECONOMIC OFFENDERS AND CONFISCATION OF PROPERTY

4. (1) Where the Director or any other officer not below the rank of Deputy Director

authorised by the Director for the purposes of this section, has reason to believe (the

reasons for such belief to be recorded in writing), on the basis of material in his possession,

that any individual is a fugitive economic offender, he may file an application in such form

and manner as may be prescribed in the Special Court that such individual may be declared

as a fugitive economic offender.

(2) The application referred to in sub-section (2) shall contain—

(a) reasons for the belief that an individual is a fugitive economic offender;

(b) any information available as to the whereabouts of the fugitive economic

offender;

of crime, including any such property outside India for which confiscation is sought;

(d) a list of properties or benami property owned by the individual in India or

abroad for which confiscation is sought; and

(e) a list of persons who may have an interest in any of the properties listed

under clauses (c) and (d).

(3) The Authorities appointed for the purposes of the Prevention of Money-laundering

Act, 2002 shall be the Authorities for the purposes of this Act.

5. (1) The Director or any other officer authorised by the Director, not below the rank

of Deputy Director, may, with the permission of the Special Court, attach any property

mentioned in the application under section 4 by an order in writing in such manner as may be

prescribed.

(2) Notwithstanding anything contained in sub-section (1) or section 4, the Director or

any other officer, not below the rank of Deputy Director, authorised by the Director, may, by

an order in writing, at any time prior to the filing of the application under section 4, attach any

property—

(a) for which there is a reason to believe that the property is proceeds of crime,

or is a property owned by an individual who is a fugitive economic offender; and

(b) which is being or is likely to be dealt with in a manner which may result in the

property being unavailable for confiscation:

Provided that the Director or any other officer who provisionally attaches any property

under this sub-section shall, within a period of thirty days from the date of such attachment,

file an application under section 4 before the Special Court.

(3) The attachment of any property under this section shall continue for a period of

one hundred and eighty days from the date of order of attachment or such other period as

may be extended by the Special Court before the expiry of such period.

(4) Nothing in this section shall prevent the person interested in the enjoyment of the

immovable property attached under sub-section (1) from such enjoyment.

Application

for

declaration of

fugitive

economic

offender and

procedure

therefor.

15 of 2003.

Attachment of

property.

Application of

Act.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

Explanation.— For the purposes of this sub-section, the expression “person

interested”, in relation to any immovable property includes all persons claiming or entitled to

claim any interest in the property.

6. The Director or any other officer shall, for the purposes of section 4, have the same

powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a

suit in respect of the following matters, namely:—

(a) discovery and inspection;

(b) enforcing the attendance of any person, including any officer of a reporting

entity and examining him on oath;

(d) receiving evidence on affidavits;

(e) issuing commissions for examination of witnesses and documents; and

(f) any other matter which may be prescribed.

7. (1) Notwithstanding anything contained in any other provisions of this Act, where

a Director or any other officer authorised by the Director, on the basis of material in his

possession, has reason to believe (the reasons for such belief to be recorded in writing), that

an individual may be a fugitive economic offender, he may enter any place—

(i) within the limits of the area assigned to him; or

(ii) in respect of which he is authorised for the purposes of this section, by such

other authority, who is assigned the area within which such place is situated.

(2) Where the Director or any other officer authorised by him, on the basis of material

in his possession, has reason to believe (the reasons for such belief to be recorded in

writing) that an individual may be a fugitive economic offender and it is necessary to enter

any place as mentioned in sub-section (1), he may request any proprietor, employee or any

other person who may be present at that time, to—

(a) afford him the necessary facility to inspect such records as he may require

and which may be available at such place;

(b) afford him the necessary facility to check or verify the proceeds of crime or

any transaction related to proceeds of crime which may be found therein; and

useful for, or relevant to any proceedings under this Act.

(3) The Director, or any other officer acting under this section may—

(i) place marks of identification on the records inspected by him and make or

cause to be made extracts or copies therefrom;

(ii) make an inventory of any property checked or verified by him; and

(iii) record the statement of any person present at the property which may be

useful for, or relevant to, any proceeding under this Act.

8. (1) Notwithstanding anything contained in any other law for the time being in force,

where the Director or any other officer not below the rank of Deputy Director authorised by

him for the purposes of this section, on the basis of information in his possession, has

reason to believe (the reason for such belief to be recorded in writing) that any person—

(i) may be declared as a fugitive economic offender;

(ii) is in possession of any proceeds of crime;

(iii) is in possession of any records which may relate to proceeds of crime; or

5 of 1908.

Powers

Director and

other officers.

Power of

survey.

Search and

seizure.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(iv) is in possession of any property related to proceeds of crime,

then, subject to any rules made in this behalf, he may authorise any officer sub-ordinate to

him to—

(a) enter and search any building, place, vessel, vehicle or aircraft where he has

reason to suspect that such records or proceeds of crime are kept;

(b) break open the lock of any door, box, locker, safe, almirah or other receptacle

for exercising the powers conferred by clause (a) where the keys thereof are not

available;

(d) place marks of identification on such record or property, if required or make or

cause to be made extracts or copies therefrom;

(e) make a note or an inventory of such record or property; and

(f) examine on oath any person, who is found to be in possession or control of

any record or property, in respect of all matters relevant for the purposes of any

investigation under this Act.

(2) Where an authority, upon information obtained during survey under section 7, is

satisfied that any evidence shall be or is likely to be concealed or tampered with, he may, for

reasons to be recorded in writing, enter and search the building or place where such evidence

is located and seize that evidence.

9. Notwithstanding anything contained in any other law for the time being in force–

(a) if an authority, authorised in this behalf by the Central Government by general

or special order, has reason to believe (the reason for such belief to be recorded in

writing) that any person has secreted about his person or anything under his possession,

ownership or control, any record or proceeds of crime which may be useful for or

relevant to any proceedings under this Act, he may search that person and seize such

record or property which may be useful for or relevant to any proceedings under this

Act;

(b) where an authority is about to search any person, he shall, if such person so

requires, take such person within twenty-four hours to the nearest Gazetted Officer,

superior in rank to him, or a Magistrate:

Provided that the period of twenty-four hours shall exclude the time necessary

for the journey undertaken to take such person to the nearest Gazetted Officer, superior

in rank to him, or the Magistrate’s Court;

person for more than twenty-four hours prior to taking him before the Gazetted Officer,

superior in rank to him, or the Magistrate referred to in that sub-section:

Provided that the period of twenty-four hours shall exclude the time necessary

for the journey from the place of detention to the office of the Gazetted Officer, superior

in rank to him, or the Magistrate’s Court;

(d) the Gazetted Officer or the Magistrate before whom any such person is

brought shall, if he sees no reasonable ground for search, forthwith discharge such

person but otherwise shall direct that search be made;

(e) before making the search under clause (a) or clause (d), the authority shall

call upon two or more persons to attend and witness the search and the search shall be

made in the presence of such persons;

(f) the authority shall prepare a list of record or property seized in the course of

the search and obtain the signatures of the witnesses on the list;

Search of

persons.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(g) no female shall be searched by anyone except a female; and

(h) the authority shall record the statement of the person searched under

clause (a) or clause (e) in respect of the records or proceeds of crime found or seized in

the course of the search.

10. (1) Where an application under section 4 has been duly filed, the Special Court

shall issue a notice to an individual who is alleged to be a fugitive economic offender.

(2) The notice referred to in sub-section (1), shall also be issued to any other person

who has any interest in the property mentioned in the application under sub-section (2) of

section 4.

(3) A notice under sub-section (1) shall—

(a) require the individual to appear at a specified place and time not less than six

weeks from the date of issue of such notice; and

(b) state that failure to appear on the specified place and time shall result in a

declaration of the individual as a fugitive economic offender and confiscation of

property under this Act.

(4) A notice under sub-section (1) shall be forwarded to such authority, as the Central

Government may notify, for effecting service in a contracting State.

(5) The authority referred to in sub-section (4) shall make efforts to serve the notice

within a period of two weeks in such manner as may be prescribed.

(6) A notice under sub-section (1) may also be served to the individual alleged to be a

fugitive economic offender by electronic means to—

(a) his electronic mail address submitted in connection with an application for

allotment of Permanent Account Number under section 139A of the Income-tax

Act, 1961;

(b) his electronic mail address submitted in connection with an application for

enrolment under section 3 of the Aadhaar (Targeted Delivery of Financial and Other

Subsidies, Benefits and Services) Act, 2016;

which is accessed by him over the internet, subject to the satisfaction of the Special

Court that such account has been recently accessed by the individual and constitutes

a reasonable method for communication of the notice to the individual.

11. (1) Where any individual to whom notice has been issued under sub-section (1) of

section 10 appears in person at the place and time specified in the notice, the Special Court

may terminate the proceedings under this Act.

(2) Where any individual to whom notice has been issued under sub-section (1) of

section 10 fails to appear at the place and time specified in the notice, but enters appearance

through counsel, the Special Court may in its discretion give a period of one week to file a

reply to the application under section 4.

(3) Where any individual to whom notice has been issued under sub-section (1) of

section 10 fails to enter appearance either in person or through counsel, and the Special

Court is satisfied—

(a) that service of notice has been effected on such party; or

(b) that notice could not be served in spite of best efforts because such individual

has evaded service of notice,

it may, after recording reasons in writing, proceed to hear the application.

Notice.

Procedure for

hearing

application.

43 of 1961.

18 of 2016.

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[PART II—

(4) The Special Court may also give any person to whom notice has been issued under

sub-section (2) of section 10 a period of one week to file a reply to the application under

section 4.

12. (1) After hearing the application under section 4, if the Special Court is satisfied

that an individual is a fugitive economic offender, it may, by an order, declare the individual

as a fugitive economic offender for reasons to be recorded in writing.

(2) On a declaration under sub-section (1), the Special Court may order that any of the

following properties stand confiscated to the Central Government—

(a) the proceeds of crime in India or abroad, whether or not such property is

owned by the fugitive economic offender; and

(b) any other property or benami property in India or abroad, owned by the

fugitive economic offender.

(3) The confiscation order of the Special Court shall, to the extent possible, identify the

properties in India or abroad that constitute proceeds of crime which are to be confiscated

and in case such properties cannot be identified, quantify the value of the proceeds of crime.

(4) The confiscation order of the Special Court shall separately list any other property

owned by the fugitive economic offender in India which is to be confiscated.

(5) Where the Special Court has made an order for confiscation of any property under

sub-section (2), and such property is in a contracting State, the Special Court may issue a

letter of request to a Court or authority in the contracting State for execution of such order.

(6) Every letter of request to be transmitted to a contracting State under sub-section (5)

shall be transmitted in such form and manner as the Central Government may, by notification,

specify in this behalf.

(7) The Special Court may, while making the confiscation order, exempt from confiscation

any property which is a proceed of crime in which any other person, other than the fugitive

economic offender, has an interest if it is satisfied that such interest was acquired bonafide

and without knowledge of the fact that the property was proceeds of crime.

(8) All the rights and title in the confiscated property shall, from the date of the

confiscation order, vest in the Central Government, free from all encumbrances.

(9) Where on the conclusion of the proceedings, the Special Court finds that the

individual is not a fugitive economic offender, the Special Court shall order release of property

or record attached or seized under this Act to the person entitled to receive it.

(10) Where an order releasing the property has been made by the Special Court under

sub-section (9), the Director or any other officer authorised by him in this behalf may withhold

the release of any such property or record for a period of ninety days from the date of receipt

of such order, if he is of the opinion that such property is relevant for the appeal proceedings

under this Act.

13. (1) Where at any time after the institution of the application under section 4, any

other property is discovered or identified which constitutes proceeds of crime or is property

owned by the fugitive economic offender liable to be confiscated under this Act, the Director

or any other officer not below the rank of Deputy Director authorised by the Director for the

purposes of this section, may file a supplementary application in the Special Court seeking

confiscation of such properties.

(2) The provisions of sections 4 to 12 shall, as far as may be, apply in relation to such

application as they apply in relation to an application under section 4.

14. Notwithstanding anything contained in any other law for the time being in force,—

(a) on a declaration of an individual as a fugitive economic offender, any Court

or tribunal in India, in any civil proceeding before it, may, disallow such individual from

putting forward or defending any civil claim; and

Declaration

of fugitive

economic

offender.

Supplementary

application.

Power to

disallow civil

claims.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(b) any Court or tribunal in India in any civil proceeding before it, may, disallow

any company or limited liability partnership from putting forward or defending any

civil claim, if an individual filing the claim on behalf of the company or the limited

liability partnership, or any promoter or key managerial personnel or majority

shareholder of the company or an individual having a controlling interest in the limited

liability partnership has been declared as a fugitive economic offender.

Explanation.—For the purposes of this section, the expressions—

(a) “company” means anybody corporate and includes a firm, or other

association of persons; and

(b) “limited liability partnership” shall have the same meaning as assigned

to it in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership

Act, 2008.

15. (1) The Central Government may, by order published in the Official Gazette, appoint

as many of its officers (not below the rank of a Joint Secretary to the Government of India) as

it thinks fit, to perform the functions of an Administrator.

(2) The Administrator appointed under sub-section (1) shall receive and manage the

property in relation to which an order has been made under sub-section (2) of section 12 in

such manner and subject to such conditions as may be prescribed.

(3) The Administrator shall also take such measures, as the Central Government may

direct, to dispose of the property which is vested in the Central Government under

section 12:

Provided that the Central Government or the Administrator shall not dispose of any

property for a period of ninety days from the date of the order under sub-section (2) of

section 12.

CHAPTER III

MISCELLANEOUS

16. (1) The burden of proof for establishing—

(a) that an individual is a fugitive economic offender; or

(b) that a property is the proceeds of crime or any other property in which the

individual alleged to be a fugitive economic offender has an interest,

shall be on the Director or the person authorised by the Director to file the application under

section 4.

(2) Notwithstanding anything contained in any other law for the time being in force,

where any person referred to in sub-section (2) of section 10 claims that any interest in any

property was acquired bonafide and without knowledge of the fact that, such property

constitutes proceeds of crime, the burden of proving such fact shall lie upon him.

(3) The standard of proof applicable to the determination of facts by the Special Court

under this Act shall be preponderance of probabilities.

17. (1) An appeal shall lie from any judgment or order, not being an interlocutory order,

of a Special Court to the High Court both on facts and on law.

(2) Every appeal under this section shall be preferred within a period of thirty days

from the date of the judgment or order appealed from:

Provided that the High Court may entertain an appeal after the expiry of the said period

of thirty days, if it is satisfied that the appellant had sufficient cause for not preferring the

appeal within the period of thirty days:

Provided further that no appeal shall be entertained after the expiry of period of ninety

days.

Management

of properties

confiscated

under this

Act.

Rules of

evidence.

Appeal.

6 of 2009.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

18. No civil court shall have jurisdiction to entertain any suit or proceeding in respect

of any matter which the Special Court is empowered by or under this Act to determine and no

injunction shall be granted by any court or other authority in respect of any action taken or

to be taken in pursuance of any power conferred by or under this Act.

19. No suit, prosecution or other legal proceeding shall lie against the Central

Government or Presiding Officer of the Special Court or Director or Deputy Director or any

other officer authorised by the Director for anything which is in good faith done or intended

to be done under this Act or any rule made thereunder.

20. (1) The Central Government may, having regard to the objects of this Act, and if it

considers necessary or expedient so to do, by notification add to, or as the case may be, omit

from the Schedule any offences specified therein.

(2) Every such notification shall, as soon as after it is issued, be laid before each

House of Parliament.

21. The provisions of this Act shall have effect, notwithstanding anything inconsistent

therewith contained in any other law for the time being in force.

22. The provisions of this Act shall be in addition to and not in derogation of any other

law for the time being in force.

23. (1) The Central Government may, by notification in the Official Gazette, make rules

for carrying out the provisions of this Act.

(2) In particular, and without prejudice to generality of the foregoing power, such rules

may provide for all or any of the following matters, namely:—

(a) the form and manner of filing application under sub-section (1) of section 4;

(b) the manner of attachment of property under sub-section (1) of section 5;

(d) the manner in which the notice shall be served under sub-section (5) of

section 10;

(e) any other electronic account under clause (c) of sub-section (6) of

section 10;

(f) the manner and conditions subject to which the Administrator shall receive

and manage the property confiscated under sub-section (2) of section 15; and

(g) any other matter which is required to be, or may be, prescribed or in respect

of which provision is to be made by rules.

24. Every rule made under this Act shall be laid, as soon as may be after it is made,

before each House of Parliament, while it is in session, for a total period of thirty days which

may be comprised in one session or in two or more successive sessions, and if, before the

expiry of the session immediately following the session or the successive sessions aforesaid,

both Houses agree in making any modification in the rule or both Houses agree that the rule

should not be made, the rule shall thereafter have effect only in such modified form or be of

no effect, as the case may be; so, however, that any such modification or annulment shall be

without prejudice to the validity of anything previously done under that rule.

25. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central

Government may, by order, published in the Official Gazette, make such provisions not

inconsistent with the provisions of this Act as may appear to be necessary for removing the

difficulty:

Provided that no order shall be made under this section after the expiry of five years

from the date of commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made,

before each House of Parliament.

Protection of

action taken

in good faith.

Power of

Central

Government

to amend

Schedule.

Overriding

effect.

Application

of other laws

not barred.

Power to

make rules.

Laying of

rules before

Parliament.

Power to

remove

difficulties.

Bar of

jurisdiction.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

THE SCHEDULE

[See section 2(l) and (m)]

Section

Description of offence

I. Offences under the Indian Penal Code, 1860 (45 of 1860)

120B read with

Punishment of criminal conspiracy.

any offence in

this Schedule

255

Counterfeiting Government stamp.

257

Making or selling instrument for counterfeiting Government stamp.

258

Sale of counterfeit Government stamp.

259

Having possession of counterfeit Government stamp.

260

Using as genuine a Government stamp known to be counterfeit.

417

Punishment for cheating.

418

Cheating with knowledge that wrongful loss may ensue to person whose

interest offender is bound to protect.

420

Cheating and dishonestly inducing delivery of property.

421

Dishonest or fraudulent removal or concealment of property to prevent

distribution among creditors.

422

Dishonestly or fraudulently preventing debt being available for creditors.

423

Dishonest or fraudulent execution of deed of transfer containing false

statement of consideration.

424

Dishonest or fraudulent removal or concealment of property.

467

Forgery of valuable security, will, etc.

471

Using as genuine a forged [document or electronic record].

472

Making or possessing counterfeit seal, etc., with intent to commit forgery

punishable under section 467.

473

Making or possessing counterfeit seal, etc., intent to commit forgery

punishable otherwise.

475

Counterfeiting device or mark used for authenticating documents described

in section 467, or possessing counterfeit marked material.

476

Counterfeiting device or mark used for authenticating documents other

than those described in section 467, or possessing counterfeit marked

material.

481

Using a false property mark.

482

Punishment for using a false property mark.

483

Counterfeiting a property mark used by another.

484

Counterfeiting a mark used by a public servant.

485

Making or possession of any instrument for counterfeiting a property

mark.

486

Selling goods marked with a counterfeit property mark.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

487

Making a false mark upon any receptacle containing goods.

488

Punishment for making use of any such false mark.

489A

Counterfeiting currency notes or bank notes.

489B

Using as genuine, forged or counterfeit currency notes or bank notes.

II. Offences under the Negotiable Instruments Act, 1881 (26 of 1881)

138

Dishonour of cheque for insufficiency, etc., of funds in the account.

III. Offences under the Reserve Bank of India Act, 1934 (2 of 1934)

58B

Penalties.

IV. Offences under the Central Excise Act, 1944 (1 of 1944)

Section 9

Offences and Penalties.

V. Offences under the Customs Act, 1962 (52 of 1962)

135

Evasion of duty or prohibitions.

VI. Offences under the Prohibition of Benami Property Transactions Act, 1988

(45 of 1988)

Prohibition of benami transactions.

VII. Offences under the Prevention of Corruption Act, 1988 (49 of 1988)

Public servant taking gratification other than legal remuneration in

respect of an official act.

Taking gratification in order, by corrupt or illegal means, to influence

public servant.

Taking gratification for exercise of personal influence with public

servant.

Punishment for abetment by public servant of offences defined in

section 8 or section 9 of the Prevention of Corruption Act, 1988.

Criminal misconduct by a public servant.

VIII. Offences under the Securities and Exchange Board of India Act, 1992

(15 of 1992)

12A read with

Prohibition of manipulative and deceptive devices, insider trading and

section 24

substantial acquisition of securities or control.

Offences for contravention of the provisions of the Act.

IX. Offences under the Prevention of Money Laundering Act, 2002 (15 of 2003)

Offence of money-laundering.

Punishment for money-laundering.

X. Offences under the Limited Liability Partnership Act, 2008 (6 of 2009)

Sub-section (2)

Carrying on business with intent or purpose to defraud creditors of the

of section 30

Limited Liability Partnership or any other person or for any other fraudulent

purpose.

Section

Description of offence

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

XI. Offences under the Foreign Contribution (Regulation) Act, 2010 (42 of 2010)

Penalty for article or currency or security obtained in contravention of

Section 10.

Punishment for contravention of any provision of the Act.

XII. Offences under the Companies Act, 2013 (18 of 2013)

Sub-section (4)

Offer or invitation for subscription of securities on private placement.

of section 42 of

the Companies

Act, 2013 read

with section 24

of the Securities

and Exchange

Board of India

Act, 1992

(15 of 1992)

Repayment of deposits, etc., accepted before commencement of the

Companies Act, 2013.

76A

Punishment for contravention of section 73 or section 76 of the

Companies Act, 2013.

Second

Carrying on business of a company for a fraudulent or unlawful purpose.

proviso to sub-

section (4) of

section 206

Clause (b) of

Conducting the business of a company with intent to defraud its creditors,

section 213

members or any other persons or otherwise for a fraudulent or unlawful

purpose, or in a manner oppressive to any of its members or that the

company was formed for any fraudulent or unlawful purpose.

447

Punishment for fraud.

452

Punishment for wrongful withholding of property.

XIII. Offences under the Black Money (Undisclosed Foreign Income and Assets) and

Imposition of Tax Act, 2015 (22 of 2015)

Punishment for wilful attempt to evade tax.

XIV. Offences under the Insolvency and Bankruptcy Code, 2016 (31 of 2016)

Punishment for transactions defrauding creditors.

XV. Offences under the Central Goods and Services Tax Act, 2017 (12 of 2017)

Sub-section (5)

Punishment for certain offences.

of section 132

Section

Description of offence

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

STATEMENT OF OBJECTS AND REASONS

There have been several instances of economic offenders fleeing the jurisdiction of

Indian courts anticipating the commencement of criminal proceedings or sometimes during

the pendency of such proceedings. The absence of such offenders from Indian courts has

several deleterious consequences, such as, it obstructs investigation in criminal cases, it

wastes precious time of courts and it undermines the rule of law in India. Further, most of

such cases of economic offences involve non-repayment of bank loans thereby worsening

the financial health of the banking sector in India. The existing civil and criminal provisions

in law are inadequate to deal with the severity of the problem.

2. In order to address the said problem and lay down measures to deter economic

offenders from evading the process of Indian law by remaining outside the jurisdiction of

Indian courts, it is proposed to enact a legislation, namely, the Fugitive Economic Offenders

Bill, 2018 to ensure that fugitive economic offenders return to India to face the action in

accordance with law.

3. The said Bill, inter alia, provides for:

(i) the definition of the fugitive economic offender as an individual who has

committed a scheduled offence or offences involving an amount of one hundred crore

rupees or more and has absconded from India or refused to come back to India to avoid

or face criminal prosecution in India;

(ii) attachment of the property of a fugitive economic offender and proceeds of

crime;

(iii) the powers of Director relating to survey, search and seizure and search of

persons;

(iv) confiscation of the property of a fugitive economic offender and proceeds of

crime;

(v) disentitlement of the fugitive economic offender from putting forward or

defending any civil claim;

(vi) appointment of an Administrator for the purposes of the proposed legislation;

(vii) appeal to the High Court against the orders issued by the Special Court;

and

(viii) placing the burden of proof for establishing that an individual is a fugitive

economic offender on the Director or the person authorised by the Director.

4. The Bill seeks to achieve the above objectives.

NEW DELHI;

ARUN JAITLEY.

The 3rd March, 2018.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

FINANCIAL MEMORANDUM

The Bill does not involve any expenditure of recurring or non-recurring nature from the

Consolidated Fund of India.

————

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 23 of the Bill empowers the Central Government to make rules for carrying out

the provisions of the proposed legislation in respect of matters, which shall, inter alia,

include — (a) the form and manner of filing application under sub-section (1) of section 4;

(b) the manner of attachment of property under sub-section (1) of section 5; (c) other matters

under clause (f) of section 6; (d) the manner in which the notice shall be served under

sub-section (5) of section 10; (e) any other electronic account under clause (c) of

sub-section (6) of section 10; (f) the manner and conditions subject to which the Administrator

shall receive and manage the property confiscated under sub-section (2) of section 15; and

(g) any other matter which is required to be, or may be, prescribed or in respect of which

provision is to be made by rules.

2. The matters in respect of which rules may be made are matters of procedure and

administrative detail and it is not practicable to provide for them in the Bill itself. The delegation

of legislative power is, therefore, of a normal character.

————

SNEHLATA SHRIVASTAVA

Secretary General

MGIPMRND—4761GI(S3)—13-03-2018 .

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110 002

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110 054.