The government has issued directions to deal with willful bank loan defaulters or fugitive economic offenders.
A lock out circular can be opened by the Bureau of Immigration in respect of Indian citizens and foreigners on the request of an authorized originator, which includes:
- an officer not below the rank of deputy secretary to the Government of India; or
- an officer not below the rank of joint secretary in the state government; or
- district magistrates; or
- superintendents of police; or
- designated officers of various law enforcing and security agencies; or
- designated officer of Interpol; or
- chairman/managing director/chief executive of all public sector banks; or
- as per directions of any criminal court in India.
- Fugitive Economic Offenders Act, 2018 has been approved for effective action against economic offenders fleeing Indian jurisdiction.
- 83 LOCs has been opened by Bureau of Immigration till now at the behest of banks.
- Any person (including willful defaulter) leaving India against whom LOC has been issued, can be detained or prevented by immigration authorities.
- As per Fugitive Economic Offenders Act, 2018, the act provides for:
- The attachment of property of a fugitive economic offender,
- Confiscation of such offender’s property and
- Disentitlement of the offender from defending any civil claim..
- Further, the government has advised public sector banks to obtain certified copy of the passport of promoters/directors and other authorised signatories of companies availing loan facilities of more than Rs 50 crore.
Read more about Fugitive Economic Offenders Act, 2018 https://capage.in/government-takes-steps-to-reduce-incidence-of-frauds-in-banks/