The Ministry of Finance informed Parliament that 15 individuals have been declared Fugitive Economic Offenders (FEOs) till October 31. Out of these, nine major offenders owe Indian banks over ₹58,000 crore, of which only about ₹19,000 crore has been recovered so far.
Background
- Fugitive Economic Offenders (FEOs) are individuals accused of large-scale financial fraud who flee India to avoid prosecution.
- The Fugitive Economic Offenders Act, 2018 empowers authorities to confiscate their assets and recover dues.
- These offenders are linked to high-value scams involving banks and financial institutions.
Scale of the Problem
- Total dues: ₹58,082 crore (Principal: ₹26,645 crore + Interest: ₹31,437 crore).
- Recovery so far: Just over ₹19,000 crore (~33%).
- Outstanding amount: Nearly ₹39,000 crore still unpaid.
Bank Exposure
- State Bank of India (SBI): Largest exposure, over ₹22,000 crore.
- Punjab National Bank (PNB) & Bank of India: Significant losses.
- Recovery performance: SBI has recovered ~52% of dues, mainly through liquidation of Vijay Mallya’s assets. Other banks have recovery rates below 40%.
Impact on Public Sector Banks
- Public banks carry most of the burden of these unpaid loans.
- The State Bank of India has the maximum exposure among lenders.
- Punjab National Bank and Bank of India follow in terms of outstanding dues.
Key Offenders
- Vijay Mallya: Tops the list with nearly ₹27,000 crore owed; recovery rate ~56%.
- Sandesara Family (Sterling Group): Owes large sums; recovery rate ~17%.
- Nirav Modi: Linked to PNB fraud; recovery rate ~7%.
- Together, these three account for the bulk of the outstanding dues.
Government Action
- Legal measures: Arrest warrants issued, assets attached under the FEO Act.
- Challenges: Offenders remain abroad, making extradition and recovery difficult.
- Policy focus: Strengthening international cooperation and tightening banking oversight.
Conclusion
Fugitive economic offenders represent a major financial and governance challenge for India.
Fast legal action, foreign cooperation, and stronger banking oversight are essential to protect national wealth.
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