- The Ministry of Home Affairs has empowered the
Serious Fraud Investigation Office (SFIO) to request the issuance of look-out-circulars (LOC ) against people who are suspected of defaulting on large loans. - Last week, the same power was also granted to the CEOs of India’s public-sector banks, which have largely been the major casualties of these frauds and loan defaults.
- Prior to these changes, the ability to request for LOCs was mainly extended to police authorities, the CBI, Enforcement Directorate, the home and external affairs ministries as well as regional passport offices and customs and tax officials.
To this effect, the Ministry of Home Affairs has empowered the Serious Fraud Investigation Office (SFIO), which is housed under the corporate affairs ministry, to request the issuance of $4(LOC) against people who are suspected of defaulting on large loans.
Last week, the same power was also granted to the$4, which have largely been the major casualties of these frauds and loan defaults. However, as these public-sector banks aren’t official investigation agencies, the LOCs requested by them can be challenged in court. That is not the case with the SFIO.
Prior to these changes, the ability to request for LOCs was mainly extended to police authorities, the CBI, Enforcement Directorate, the home and external affairs ministries as well as regional passport offices and customs and tax officials.
A major reason why wilful defaulters like
This is reportedly what happened in the case of Vijay Mallya, who fled India in March 2016. The CBI actually $4 it had filed against the liquor baron in October 2015 from “detain” to “inform” after citing a lack of evidence and Mallya’s supposed intention to cooperate, which eventually allowed him to leave the country. The CBI had actually taken over the case from the SFIO, which had been looking into the diversion of funds at Mallya’s companies in September 2015.
By broadening the number of stakeholders that can ask for the arrest of a
A few months ago, the central government also passed the $4. The law allows the Enforcement Directorate to seize the domestic as well as foreign assets of “economic offenders” who have left the country so their creditors may recover their dues. The crimes involve amounts of ₹1 billion or more.
SEE ALSO:
$4
$4
$4