Economic offenders who fled India owe ₹39,000 crores, Pg9

Key Highlights:

• Nine Fugitive Economic Offenders (FEOs) owe Indian banks over ₹58,000 crore in principal and interest.
• The principal amount owed is ₹26,645 crore, with interest accounting for ₹31,437 crore.
• Banks have recovered just over ₹19,000 crore, approximately 33% of the total dues.
• As of October 31, 15 individuals have been declared FEOs by the Ministry of Finance.
• State Bank of India (SBI) is owed over ₹22,000 crore and has achieved a recovery rate of close to 52%.
• Vijay Mallya tops the list of offenders with nearly ₹27,000 crore owed.

Detailed Insights:

• Fugitive Economic Offenders leave India to avoid criminal prosecution despite arrest warrants.
• SBI's high recovery rate is attributed to effective measures, including liquidation, in Vijay Mallya’s account.
• Recovery rates for banks other than SBI remain below 40%.
• Over 56% of the amount owed by Vijay Mallya has been recovered, while recovery rates for the Sandesara family and Nirav Modi are significantly lower.
• Punjab National Bank (PNB) bore the brunt of Nirav Modi’s defaults.
• Loan exposure to the Sandesara family was shared among multiple banks.

Key Concepts Involved:

• Fugitive Economic Offender (FEO): An individual who has an arrest warrant issued for economic offenses and has left the country to avoid prosecution.
• Liquidation: The process of converting assets into cash to repay debts.
• Default: Failure to repay a debt or loan according to the agreed terms.