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Fugitive offenders owe ₹58,082 cr to public sector banks: Govt tells Lok Sabha
The government said 15 people have been declared fugitive economic offenders, out of which nine are involved in large-scale financial frauds against public sector banks
Fifteen fugitive economic offenders (FEOs), including the Sandesara brothers, Nirav Modi, and Vijay Mallya, owe ₹58,082 crore to about a dozen public sector banks, of which the majority is the interest component on loans, the government told Parliament on Monday.
The government said the Sandesaras brothers and their companies owed ₹18,694.32 crore, including ₹7,875.40 crore in principal and ₹10,818.92 crore in interest.
In a written reply in the Lok Sabha, minister of state for home Pankaj Chaudhary gave details of dues and settlements in cases pertaining to the FEO Act . The public sector banks have recovered ₹3,156.17 crore from the Sandesara brothers.
Chaudhary said that as of October 31 this year, 15 people have been declared FEOs under the FEO Act, 2018, out of which nine are related to large-scale financial frauds against public sector banks.
The FEO Act empowers authorities to confiscate and attach proceeds of crimes and assets when the amount involved is higher than ₹100 crore. Such attachment is not linked to conviction.
The FEO Act was enacted in 2018 to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts.
Chaudhary said Sandesara brothers Nitin and Chetan, promoters of Sterling Biotech, negotiated a one-time settlement.
The 15 FEOs collectively owe ₹26,645 crore as principal loan amounts to the banks, while the interest component is ₹31,437 crore. They owe to 12 state-owned banks, including Punjab National Bank, Bank of Baroda, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Bank.
The Supreme Court last week agreed to quash all criminal proceedings against the Sandesaras after they agreed to deposit an additional ₹5,100 crore in the lender banks. They have deposited ₹3,507 crore under various heads, leaving dues of about ₹3253 crore against a total one-time settlement negotiated with the banks ( ₹6,761 crore). Parallel insolvency proceedings have resulted in the recovery of ₹1192 crore for banks.
