New Delhi: Signaling a strong crackdown on rising bank fraud cases, the government on Monday revealed extensive enforcement action across the country. Finance Minister Nirmala Sitharaman informed the Lok Sabha that the Enforcement Directorate (ED) has investigated 1,105 bank fraud cases under anti-money laundering laws and seized assets worth ₹64,920 crore linked to proceeds of crime. The disclosure came during a parliamentary discussion on economic offences and amendments to insolvency laws.
Arrests, Prosecution, and Asset Recovery
The minister stated that 150 accused have been arrested so far in connection with these cases, while 277 prosecution complaints have been filed. Additionally, eight individuals have been declared fugitive economic offenders, indicating that several high-value offenders had fled the country to evade legal action but are now being pursued under stringent provisions.
She further explained that the Fugitive Economic Offenders Act (FEOA), 2018, was enacted to prevent offenders involved in economic crimes of ₹100 crore or more from escaping Indian jurisdiction by staying abroad. The law enables authorities to confiscate properties, attach benami assets, issue lookout notices through immigration agencies, and restrict offenders from raising capital or accessing financial markets.
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Legal Framework and Enforcement Tools
During the debate, the Finance Minister also highlighted that assets worth ₹15,186 crore have been attached so far, out of which ₹15,183 crore has been restituted to public sector banks. This recovery is seen as a major step toward compensating financial institutions and restoring confidence in the banking system.
Action under the Prevention of Money Laundering Act (PMLA) has also intensified. According to the minister, three accused have already been convicted under PMLA provisions, reflecting progress not just in investigation but also in securing judicial outcomes against offenders.
Referring to the PMC Bank fraud case, she noted that ₹104 crore has been recovered with the assistance of the ED. Additionally, properties worth ₹725 crore have been attached under the FEOA framework. These actions are considered significant, especially in cases where depositors’ funds were severely impacted.
The statement was made during discussions on amendments to the Insolvency and Bankruptcy Code (IBC), where several members raised concerns about economic offenders and individuals fleeing the country after committing large-scale fraud. In response, the government presented a detailed account of enforcement measures and outcomes.
Implications for Banking and Governance
Experts believe that stringent action against economic offences is essential, as such frauds directly impact the stability of the banking system, investor confidence, and the broader economy. The scale of asset seizures and arrests suggests that authorities are adopting a zero-tolerance approach toward financial crimes.
However, experts also emphasize that enforcement alone is not enough. Strengthening transparency in banking operations, improving risk management systems, and ensuring early detection of fraudulent activities are equally crucial. The effectiveness of these measures in curbing large-scale financial frauds will be closely watched in the coming years.
