Nine major bank fraud accused among 15 fugitive economic offenders: govt.
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims + Mains·
Why in news
The Finance Ministry informed the Lok Sabha that 15 individuals, including Nirav Modi and Vijay Mallya, have been declared wanted under the Fugitive Economic Offenders Act (FEOA) for large-scale bank frauds.
Background
The cumulative principle amount for the 15 fugitives was ₹26,645 crore, with accrued interests totaling ₹31,437 crore. Since June 2014, 120 people have been convicted under the Prevention of Money Laundering Act (PMLA).
Facts for Prelims
- Fact15 people have been declared wanted under the Fugitive Economic Offenders Act (FEOA)
- FactCumulative principle amount for the 15 fugitives: ₹26,645 crore
- FactTotal accrued interest for the 15 fugitives: ₹31,437 crore
- Fact120 people convicted under PMLA since June 2014
- FactEnforcement Directorate (ED) has registered 6,312 cases under PMLA
For Mains
Q. Discuss the effectiveness of the Fugitive Economic Offenders Act and PMLA in curbing large-scale financial frauds and recovering public money from absconding offenders.
Dimensions to cover in your answer
- Asset recovery bottleneck: Difficulty in seizing offshore assets and complex shell company structures
- Legal enforcement gap: Challenges in extraditing high-profile economic offenders from non-cooperative jurisdictions
- Systemic risk: Impact of large-scale non-performing assets (NPAs) on public sector bank liquidity
Keywords: Non-Performing Assets · Money Laundering · Asset Recovery · Financial Fraud · Fugitive Economic Offenders
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