New Delhi: The Centre on Monday informed Parliament that 15 fugitive economic offenders collectively owe more than ₹58,000 crore to Indian banks. The disclosure forms part of a detailed status report outlining the government’s intensified crackdown on high-profile financial offenders who fled the country after defaulting on massive loans or perpetrating large-scale fraud.
The government said action has accelerated under the Fugitive Economic Offenders Act (FEOA) and the Prevention of Money Laundering Act (PMLA), resulting in the attachment of thousands of crores worth of assets in India and abroad. The report comes amid heightened political debate over economic fugitives and the accountability of financial institutions.
High-Value Defaulters Top the List
According to the report, the 15 fugitives accused in cases involving loan fraud, money laundering, diversion of funds through shell entities, and other financial irregularities together account for a significant liability on India’s banking system. Several of them left the country over the past decade, prompting India to initiate multiple extradition requests.
Officials said these offences have had far-reaching implications beyond the immediate financial losses, affecting investor confidence and adding stress to the banking sector.
Three-Level Action Strategy: Seizure, Tracking, Extradition
The Ministry of Finance highlighted that the government’s crackdown operates on a coordinated, three-tier strategy:
- Identification and confiscation of domestic and foreign assets
- International location tracking and intelligence cooperation
- Expedited extradition and legal transfer procedures
India has formally sought assistance from authorities in the UK, UAE, Singapore, and several Caribbean jurisdictions as part of ongoing proceedings. According to officials, cooperation has improved significantly in recent years, although legal challenges remain substantial.
FEOA Becomes Key Tool in Pursuit of Economic Fugitives
The government underscored that the Fugitive Economic Offenders Act, 2018 has been a “turning point” in pursuing high-value defaulters. The law allows:
- Comprehensive confiscation of assets held in India or overseas
- Fast-track judicial proceedings against declared offenders
- Action against assets held indirectly through family members or associates
Authorities argue that the Act has strengthened India’s ability to deter financial misconduct and recover dues that otherwise remained beyond legal reach.
Relief for Banks, But Recovery Still a Long Road
While large tranches of assets have been attached, the report acknowledges that actual recovery by banks may take time. Cross-border legal complexities, prolonged court procedures, and jurisdictional hurdles often delay repatriation of assets.
Banking experts say these cases have reshaped India’s approach to loan appraisal, monitoring systems, and risk management. The magnitude of frauds associated with some fugitives has pushed regulators and lenders to enforce tighter due diligence and better early-warning mechanisms.
Political Reactions and Government’s Defence
The disclosure triggered a sharp response from opposition parties, who questioned why such massive frauds were not prevented at the outset. They argued that systemic loopholes allowed offenders to flee despite ongoing investigations.
Responding to criticism, the government reiterated that the present administration has adopted a “zero-tolerance policy” on financial crime, leading to unprecedented levels of asset seizure, legal action, and cooperation with foreign agencies. The Centre told Parliament that recovering public money remains an “absolute priority”, and every case is being pursued to its final legal conclusion.
