Home India Ministry of Finance Parliament Question: Fugitive Economic Offenders...
Date: 2025-12-01 Category: Not Applicable State: Union Government Country: India

Parliament Question: Fugitive Economic Offenders

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is a response to Lok Sabha Un-Starred Question No. 181 regarding Fugitive Economic Offenders (FEOs), answered on December 01, 2025, by the Minister of State in the Ministry of Finance. It reports that as of October 31, 2025, 15 persons have been declared FEOs, with 9 related to large-scale financial frauds against public sector banks. The document also includes details of financial losses incurred and loan settlements. **Key Points / Main Content** * **Fugitive Economic Offenders (FEOs):** * As of 31.10.2025, 15 individuals have been declared FEOs under the Fugitive Economic Offenders Act, 2018. * 9 of the 15 FEOs are related to large-scale financial frauds against public sector banks. * **Financial Losses Incurred:** * Details of total financial loss incurred by banks, name-wise and bank-wise, are included in an annexure. * The total financial loss incurred by the banks is ₹26,645 crores. * **One-Time Settlements (OTS):** * Two FEOs have negotiated loan settlements under One-Time Settlement (OTS). * Details of the names of the persons involved in OTS and associated amounts are included in an annexure. * Total amount recovered is ₹19,187 crores. * The amount settled is ₹1,630 crores, and the discount offered is ₹3,542 crores. * **Government Policy on Preventing Future Offenses:** * The government is not formulating any policy to ensure that future economic offenders are legally banned or put on a watch list before leaving the country. **Impact Analysis** **Banks:** * **Impact:** Banks have incurred substantial financial losses due to the activities of FEOs. * **Action Required:** Banks should review the provided data and potentially reassess their lending practices and risk management strategies to mitigate future losses from economic offenders. **Government of India / Ministry of Finance:** * **Impact:** The government is responsible for addressing economic offenses and preventing future occurrences. * **Action Required:** While the document states that there is no policy being formulated to ban or put economic offenders on a watch list before leaving the country, the Government should re-evaluate its stance on the need to prevent economic offenders from fleeing the country. **Fugitive Economic Offenders:** * **Impact:** The individuals declared as FEOs are subject to legal action and potential asset seizure under the Fugitive Economic Offenders Act, 2018. * **Action Required:** They will likely need to engage with legal counsel to manage the legal proceedings against them.

Key Entities Referenced

Fugitive Economic Offenders Act, 2018: A law in India to deter economic offenders from evading the process of law by remaining outside the jurisdiction of Indian courts. Ministry of Finance: The Indian government ministry concerned with finance, including revenue, economic affairs, and expenditure. One Time Settlement (OTS): A mechanism for debtors to settle their outstanding dues with a bank or financial institution by making a single payment. Fugitive Economic Offenders (FEO): Individuals declared as such under the Fugitive Economic Offenders Act, 2018. Public Sector Banks: Banks in which the government owns a major portion of the shares, and which are often subject to specific regulations and oversight.
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GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA UN-STARRED QUESTION NO. 181 TO BE ANSWERED ON MONDAY, DECEMBER 01, 2025/ AGRAHAYANA 10, 1947 (SAKA) FUGITIVE ECONOMIC OFFENDERS 181 SHRI MURARI LAL MEENA: Will the Minister of Finance be pleased to state: (a) the number of persons declared as fugitive economic offenders till date under the Fugitive Economic Offenders Act, 2018, especially in cases related to large-scale financial frauds committed against public sector banks; (b) the details of total financial loss (in rupees) caused to public sector banks by these declared fugitive economic offenders, name-wise and bank-wise; (c) the number of fugitive economic offenders who have negotiated loan settlement under One Time Settlements (OTS) so far; (d) the name and number of persons involved in the settlement along with the names of banks concerned, the amount settled, and the discount offered; (e) whether the Government is formulating any policy to ensure that in future such economic offenders are legally banned or put on watch list before leaving the country; and (f) if so, the details thereof? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) As on 31.10.2025, 15 persons have been declared as Fugitive Economic Offenders (FEOs) by the Hon’ble Special Court, FEOA under the provisions of Fugitive Economic Offenders Act, 2018 (FEOA), out of which, 09 persons are related to large-scale financial frauds committed against public sector banks. (b) The details are as per Annexure. (c) Two (02) fugitive economic offenders have negotiated loan settlement under One Time Settlement (OTS). (d) Details are provided in Annexure. (e) & (f) No. *****Annexure Details of Fugitive Economic Offender (FEO) as on 31.10.2025 Amounts in crore Rs. A B C D E F G H I Total financial loss If settled (out of F) incurred by the Bank Negotiated Total loan Name of Declared Interest amount S. settlement Name & Bank Name Fugitive Economic Principal accrued recovered N. under OTS number of Offender amount as from the till Amount Discount with the bank, person on date of date of NPA 31.10.2025 Settled offered if any (Y/N) involved in NPA till settlement 31.10.2025 a) SUDHARSHAN N NA NA NA VENKATARAMAN 97.49 228.22 4.45 b) RAMANUJAM 1 SESHARATHINAM (M/S. ZYLOG SYSTEMS LTD) VIJAY MALLAYA N NA NA NA 2 (KINGFISHER 494.33 1,341.87 995.55 AIRLINE) Bank of Baroda NIRAV MODI N NA NA NA 3 (FIRESTAR GROUP) 301.98 206.40 99.24 a) NITIN J N NA NA NA SANDESARA 191.18 188.53 67.95 b) CHETAN J 4 SANDESARA c) DIPTI C SANDESARA (STERLING GROUP) NIRAV MODI N NA NA NA 5 Bank of India 179.48 142.40 50.05NITIN SANDESRA / N NA NA NA 6 CHETAN SANDESRA 1,392.78 1,670.91 424.35 & DIPTI SANDESRA VIJAY MALLYA N NA NA NA 565.45 1,556.81 974.38 7 PUSHPESH KUMAR N NA NA NA 8 BAID 20.41 60.87 2.06 Nirav Modi N NA NA NA 9 137.19 213.45 67.36 Bank of Maharashtra Nitin Sandesara and N NA NA NA 10 Chetan Sandesara 19.42 57.30 12.69 Mr Nirav Modi N N N N 11 (Firestar International Pvt 84.35 245.11 5.61 Ltd) **Nitin Jayantilal N N N N 12 Sandesara 190.85 699.37 41.53 (Sterling Biotech Ltd) **Chetan Jayantilal Canara Bank 13 Sandesara (Sterling Biotech Ltd) Ramanujam - N N N N 14 Sesharathnam 149.51 1,066.01 (Zylog Systems Ltd) Sudarsan Venkatraman 15 (Zylog Systems Ltd) Mr. Nirav Modi N NA NA NA 16 (Director-Firestar 127.30 69.98 23.02 Central Bank of International Ltd) India Mr. Vijay Malya - N NA NA NA 17 (Director-Kingsfisher 313.44 60.80 Airlines Ltd) Nirav Modi - NA 18 Indian Bank 71.02 23.59 71.02Nitin Jayantilal Y Approved 19 Sandesara & Chetan 958.02 1,909.08 382.20 by Board 244.00 298.67 Jayantilal Sandesara Pushpesh Kumar Baid - N NA NA NA 20 23.54 76.89 Nitin Sandesara and N NA NA NA 21 Chetan Sandesara 344.35 420.52 168.16 (Sterling Biotech Ltd) Nitin Sandesara and N NA NA NA Chetan Sandesara 93.16 81.06 25.78 22 (Sterling Biotech Ltd)- Overseas Account at Hongkong Indian Overseas Nitin Sandesara and Y NA Bank Chetan Sandesara 291.94 438.47 131.47 131.47 23 (Sterling Global Resources Pvt Ltd) Nirav Modi N NA NA NA 24 (Firestar International 34.51 86.69 11.02 Ltd) Vijay Mallaya N NA NA NA 25 (M/s. Kingfisher Airlines 141.92 286.58 245.32 Ltd) Sh. Vijay Mallya N NA NA NA 26 (Kingfisher Airlines) 51.64 140.74 88.27 Sh. Nitin Sandesra N NA NA NA Punjab and Sind 27 (Sterling SEZ & 34.95 266.54 4.11 Bank(Under Infrastructure Ltd.) Consortium) Chetan Sandesra 28 (Sterling SEZ & Infrastructure Ltd.) NIRAV MODI- NA NA NA NA Punjab National FIRESTAR 237.35 233.06 48.36 29 Bank INTERNATIONAL LIMITEDNIRAV MODI- NA NA NA NA FIRESTAR DIAMOND 60.88 91.67 115.46 30 INTERNATIONAL LIMITED NIRAV MODI-NON - NA NA NA NA 31 BORROWAL FRAUD 6,799.18 93.21 VIJAY MALYA- NA NA NA NA 32 KINGFISHER 899.56 324.52 946.17 AIRLINES LIMITED STERLING SEZ AND Y SGORPL INFRASTRUCTURE 762.45 1,204.17 369.22 (Mauritius) 365.00 389.57 LIMITED Director- Corporate 33 1.Mr.Nitin Jayantilal Guarantor Sandesara 2. CHETAN JAYANTILAL SANDESARA Nitin Sandesara, Chetan NA- NA NA NA Kumar Sandesara- 211.57 104.33 46.99 Liquidated 34 STERLING BIOTECH under NCLT LIMITED STERLING SEZ AND N NA NA NA INFRASTRUCTURE 215.35 150.14 37.32 LIMITED Director- 35 1.Mr.Nitin Jayantilal Sandesara 2. CHETAN JAYANTILAL SANDESARA STERLING BIOTECH N NA NA NA UCO Bank LIMITED Director-1. 434.05 523.83 318.96 NITIN JAYANTILAL 36 SANDESARA 2. CHETAN JAYANTILAL SANDESARA Firestar International N NA NA NA 37 Limited - 35.50 37.07 3.75 Mr. Nirav ModiFirestar Diamond N NA NA NA 38 International Limited - 3.38 10.21 3.39 Mr. Nirav Modi Mr VIJAY N NA NA NA MALYA(Director of M/S 229.30 707.60 518.59 39 KINGFISHER AIRLINES LTD) Vijaya Mallya NA NA NA NA 40 262.47 848.55 451.31 Nirav Modi NA NA NA NA 41 60.63 11.35 57.61 NA NA NA NA 42 124.70 36.07 22.53 Nitin Jayantilal - NA NA NA NA 43 Sandesara 178.77 76.02 Union Bank of Chetan Jayantilal NA NA NA NA 44 India Sandesara 90.81 123.23 12.88 Dipti Chetan Jayantilal Y Nitin 45 Sandesara 870.00 952.80 430.00 Sandesra 430.00 1,393.48 Hitesh Kumar NA NA NA NA 46 Narendrabhai Patel 143.54 221.19 8.84 Ramanujam - NA NA NA NA 47 Sesharathnam 308.21 296.49 Sudarsan Venkatraman NA NA NA NA 48 106.39 316.26 257.57 Vijay Mallya No N.A. N.A. N.A. 49 (Kingfisher Airlines Ltd.) 6,848.28 11,960.05 10,814.54 Chetan Sandesara Y N.A. Nitin Sandesara 982.50 1,160.29 477.16 460.00 1,460.07 50 State Bank of (Sterling Global Oil India Resources Pvt Ltd) Chetan Sandesara N NA NA NA Nitin Sandesara 274.23 320.62 101.49 51 (Sterling Biotech Ltd)Chetan Sandesara N NA NA NA Nitin Sandesara 180.03 275.42 13.28 52 (Sterling SEZ & Infrastructure Ltd) Chetan Sandesara N NA NA NA Nitin Sandesara 15.45 51.12 5.77 53 (PMT Machines Ltd) Total - - 26,645 31,437 19,187 1,630 3,542

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