The Economic Offences (Inapplicability of Limitation) Act, 1974
📖 Detailed Explanation
The Economic Offences (Inapplicability of Limitation) Act, 1974 was enacted by the Parliament of India to strengthen the fight against economic offences, such as fraud, smuggling, tax evasion, black money, and corruption.
Before this Act, under the Code of Criminal Procedure (CrPC), 1973, there were time limits (limitation periods) for taking cognizance of offences by courts. However, the government realized that economic offences are often complex, hidden, and involve long investigations, making it difficult to prosecute offenders within the normal limitation period.
To address this, the Act provided that no limitation period would apply to economic offences.
Key Provisions:
Inapplicability of Limitation
The provisions of Chapter XXXVI of CrPC, 1973 (which deals with limitation for taking cognizance of offences) shall not apply to economic offences.
Economic Offences Defined
The Act covers offences under:
Customs Act
Foreign Exchange Regulation laws
Excise laws
Taxation laws
Other laws related to smuggling, black money, hoarding, profiteering, etc.
Rationale
Economic offences cause serious damage to the national economy.
Offenders usually operate through complex networks, making detection slow.
To ensure that offenders do not escape prosecution merely due to time limits, no limitation applies.
Effect of the Act
Courts can take cognizance of economic offences at any time, irrespective of how old the offence is.
Strengthens the government’s ability to combat financial crimes.
📊 Summary Table
| Aspect | Details |
|---|---|
| Name of Act | The Economic Offences (Inapplicability of Limitation) Act, 1974 |
| Purpose | To remove limitation period for prosecuting economic offences |
| Reason | Economic offences are complex, take time to detect/investigate, and cause serious harm to the economy |
| Main Provision | Limitation provisions under Chapter XXXVI of CrPC, 1973 do not apply to economic offences |
| Types of Offences Covered | Customs violations, tax evasion, smuggling, black money, foreign exchange violations, excise and profiteering offences |
| Impact | Courts can take cognizance of economic offences anytime, without limitation period |
| Benefit | Prevents offenders from escaping punishment on technical grounds of time-barred prosecution |
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