NEW DELHI: A Delhi court has declared two senior executives of a prominent rice-export company fugitives under India’s Fugitive Economic Offenders law, clearing the way for the confiscation of assets across borders in a long-running bank fraud case involving more than ₹1,200 crore.
A Court Ruling With Global Reach
On February 6, a special court in New Delhi declared Karan A. Chanana and Anita Daing — promoters of the Delhi-based Amira Pure Foods Pvt. Ltd. — fugitive economic offenders under India’s Fugitive Economic Offenders Act (FEOA), 2018. The ruling, delivered by special judge Rajesh Malik on a plea filed by the Enforcement Directorate, allows Indian authorities to confiscate their properties not only in India but anywhere in the world.
The court also ordered the confiscation of assets worth ₹123 crore linked to the two individuals, according to people familiar with the proceedings. The declaration marks one of the relatively few instances in which the stringent provisions of the FEOA have been successfully invoked, reflecting the government’s effort to pursue high-value economic offenders who remain outside the country.
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Allegations Against a Rice Exporter
Mr. Chanana is the chairman of Amira Pure Foods, once a well-known name in India’s basmati rice export industry, while Ms. Daing served as the company’s whole-time director. Investigators allege that the company and its promoters cheated a consortium of banks led by Canara Bank of about ₹1,200 crore.
According to enforcement officials, the alleged fraud involved cheating, criminal breach of trust, and misappropriation of funds, resulting in wrongful losses to lenders. The total loss assessed in the case stands at ₹1,201.85 crore, based on banking and investigative records cited in court filings.
Amira Pure Foods, which had operations spanning domestic and export markets, came under scrutiny as loan accounts turned irregular and lenders flagged suspected diversion and misuse of funds. The case is part of a broader pattern of stress in India’s corporate lending sector that has drawn increased attention from investigative agencies over the past decade.
Abroad and Out of Reach
Court records indicate that both accused are currently outside India. Mr. Chanana is said to be based in the United Kingdom, while Ms. Daing is believed to be in Dubai. The court noted that despite repeated attempts, legal notices could not be served on them.
In its order, the court observed that the two had left India and declined to return to face criminal prosecution. “Both the respondents, being abroad, have refused to return to India to face criminal prosecution,” the order said, adding that their absence appeared aimed at avoiding the judicial process.
Under Section 10 of the FEOA, such findings are sufficient to declare an accused a fugitive economic offender, a status that strips individuals of certain legal rights and enables sweeping asset seizures.
From CBI Case to Money Laundering Probe
The Enforcement Directorate’s case traces its origins to a first information report filed in 2020 by the Central Bureau of Investigation. The CBI accused Amira Pure Foods, its promoters, and others of fraud-related offences, setting the stage for a parallel money laundering investigation launched by the ED in 2022.
The FEOA, enacted in the aftermath of several high-profile corporate defaults, was designed to deter economic offenders from evading Indian courts by remaining overseas. By allowing authorities to confiscate assets before a trial concludes, the law aims to recover public money and signal consequences for those accused of large-scale financial crimes.
For now, the declaration against Mr. Chanana and Ms. Daing represents a procedural milestone rather than a conclusion. The underlying criminal and money laundering cases continue, even as Indian agencies pursue assets and cooperation beyond the country’s borders.
