After Mallya & Modi’s exit, India may bar 91 loan defaulters from leaving country

After Mallya & Modi's exit, India may bar 91 loan defaulters from leaving country
The government may bar 91 defaulters from leaving the country (Representational Image)

In the aftermath of the $2 billion PNB scam involving jeweller Nirav Modi, who left the country before he could be tried, the government is considering barring 91 people linked to companies that have defaulted on loans.

According to a Bloomberg report, the people were selected due to their roles as directors or owners of companies that have wilfully defaulted on loans. Around 400 companies in the country have been classified as wilful defaulters.

In addition, the Centre has also asked banks to disclose passport details of a larger group of individuals who have signed applications or stood as guarantors for soured credits of more than Rs 50 crore.

Some of them may also be barred from leaving the country if they have committed fraud or engaged in willful defaults.

The action comes in the backdrop of the country’s largest banking scam, in which Nirav Modi and his uncle Mehul Choksi allegedly cheated Punjab National Bank of over Rs 12,600 crore, with the purported involvement of a few bank employees.

Meanwhile, a new bill has been tabled in the parliament that gives authorities power to impound the assets of fugitive offenders that have fled the country after committing an offense of over Rs 100 crore.

India has witnessed several high-profile cases in the last few years where defaulters have fled the country and are now fighting against requests for extradition.

The most notable defaulter among them is businessman and former politician Vijay Mallya, who is embroiled in several financial scandals. Mallya, who is currently in the UK, owes a consortium of 17 banks around Rs 9,000 crore.

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