ABSTRACT
Extradition of economic offenders addresses the legal mechanisms for returning individuals accused of major financial crimes, such as fraud, money laundering, and bank scams, who flee jurisdictions to evade prosecution. In India, this process is governed by the Extradition Act, 1962, supplemented by the Fugitive Economic Offenders Act (FEOA), 2018, which targets those involved in offenses exceeding ₹100 crore by allowing property confiscation to compel returns. These frameworks aim to deter economic fugitives amid rising cross-border crimes that undermine financial stability.The FEOA empowers special courts to declare fugitives as economic offenders, barring them from civil claims and enabling asset attachment, as in cases against Vijay Mallya and Nirav Modi. Challenges include procedural delays, human rights concerns in requested states, and geopolitical hurdles.Extradition is primarily governed by bilateral and multilateral treaties, domestic legislation, and principles of international law, including dual criminality, specialty, and protection of human rights. While many states recognize the seriousness of economic crimes, extradition requests often face obstacles such as political considerations, differences in legal systems, lack of extradition treaties, and concerns regarding fair trial and prison conditions. Economic offences have traditionally been excluded under the “political offence exception,” although modern legal developments increasingly reject such exclusions due to the grave impact of financial crimes on public interest.Strengthening international cooperation, harmonizing legal standards, and balancing state sovereignty with global justice are key to addressing the challenges posed by transnational economic crime in the contemporary world.
Key Words: Extradition, Fugitive Economic offender, Money laundering, Cyber Crime, Corruption, Financial Crime.
AIM AND OBJECTIVE
The cumulative impact of such absconding offenders undermines investor confidence and weakens the overall financial ecosystem. Historically, India has faced similar challenges, albeit on a smaller scale the government’s delayed response in implementing robust extradition and financial recovery laws further facilitated this trend, resulting in substantial economic losses. Strengthening legal frameworks, enhancing international cooperation on extradition, and closing regulatory gaps are essential steps toward curbing economic offences and safeguarding India’s financial integrity.
RESEARCH QUESTIONS
- What was the International Law Basis on Fugitive Economic Offender?
- How dual Criminality and Human‑Rights Standards are Applied by Foreign Courts When India seeks Extradition of Economic Offenders?
- Role of Extradition Treaties and how certain Treaties or Arrangements are Drafted with Economic Offences and Corruption in Mind?
- Whether the current mix of Extradition Law + Feo Act is Coherent, Proportionate, and Compliant with International Standards?
INTRODUCTION
Extradition treaties serve as a cornerstone of international cooperation in criminal matters, ensuring that fugitives who commit crimes in one jurisdiction cannot escape justice by seeking refuge in another. Over the years, extradition laws and treaties have evolved to address emerging challenges posed by transnational crimes, including economic offences such as fraud, money laundering, tax evasion, and corporate corruption. In the Indian context, the need for an expanded and efficient extradition framework has become increasingly evident with the rise in economic offenders fleeing the country to evade legal proceedings. The Extradition Act, 1962, serves as the primary legislative instrument governing the extradition of individuals accused of economic offenses. However, its enforcement is contingent upon various factors, including the existence of bilateral or multilateral treaties, adherence to the principle of dual criminality, and compliance with the rule of specialty. Through an analysis of landmark extradition cases, this research highlights India’s approach to handling requests for the repatriation of economic offenders, shedding light on procedural hurdles, diplomatic complexities, and the influence of geopolitical considerations. This part of the study critically examines the applicability and effectiveness of extradition laws in addressing economic crimes in India. It delves into the existing legal framework, international commitments, and practical challenges associated with extraditing individuals involved in cross-border financial offenses such as fraud, money laundering, and tax evasion. Given the transnational nature of these crimes, robust international cooperation is imperative to ensure accountability and prevent financial offenders from exploiting jurisdictional loopholes. A growing concern in India is the alarming trend of individuals involved in financial misconduct or indebted to banks and government institutions fleeing the country to evade legal consequences. This phenomenon exacerbates economic instability, as it leads to unpaid debts, defaulted loans, and significant financial losses to banks, government entities, and the national treasury.