INSUBCONTINENT EXCLUSIVE:
like Vijay Mallya and Nirav Modi from fleeing the country, the government has empowered PSU banks to request lookout circulars (LOCs)
Office (SFIO), a statutory corporate fraud investigation agency, to request LOCs if it feels the suspect may escape from India
The ministry issued two circulars recently, authorising chairman-cum-managing directors or chief executive officers of public sector banks
and the SFIO to request designated authorities to issue LOCs against any wilful defaulter or fraudster if they think the person may flee the
Directorate of Revenue Intelligence, CBI, regional passport officers and police to issue an LOC to alert immigration check posts to stop
anyone leaving India, a home ministry official said
The SFIO and PSU banks can initiate the process if they suspect that the defaulter may leave the country to escape the law, the official
Earlier, investigating agencies would request LOCs in cognisable offences under the IPC or other laws in case the accused evaded arrest or
did not appear before court despite issuance of non-bailable warrants and other coercive measures and there was a likelihood of the accused
defaulting on loan amounting to Rs 9,000 crore he had taken for his now-defunct Kingfisher Airlines
cheating the state-run Punjab National Bank to the tune of Rs 13,000 crore
The government had last year brought the Fugitive Economic Offenders Act, empowering the authorities to attach and confiscate the proceeds
of crime and properties of economic offenders, like bank fraudsters or loan defaulters who fled the country
2019, Budget expectations, tax and policy announcements here
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