Govt Says 15 Fugitive Economic Offenders Owe ₹58,082 Crore to Public Sector Banks

The Union government has told Parliament that 15 individuals declared as Fugitive Economic Offenders (FEOs) collectively owe ₹58,082 crore to Indian public sector banks (PSBs). The disclosure was made in a written reply in the Lok Sabha, detailing the scale of losses and recoveries linked to large financial frauds. 

₹58,082 Crore: Principal Plus Interest

As of 31 October 2025, these FEOs together owe:

• ₹26,645 crore as principal outstanding on loans turned non-performing, and
• ₹31,437 crore as accumulated interest from the NPA date up to 31 October 2025,

taking the total to ₹58,082 crore. The government also reported that around ₹19,187 crore has been recovered so far — roughly a third of the total dues. 

Who Are These Fugitive Economic Offenders?

The list of 15 FEOs — declared under the Fugitive Economic Offenders Act, 2018 (FEOA) — includes several high-profile names linked to major bank frauds:

• Vijay Mallya – accused in over ₹9,000 crore loan default linked to Kingfisher Airlines.
• Nirav Modi – prime accused in the Punjab National Bank (PNB) scam of about ₹13,000 crore. 
• Nitin J. Sandesara, Chetan J. Sandesara, Dipti C. Sandesara – associated with the Sterling Biotech fraud case.
• Sudharshan Venkatraman and Ramanujam Sesharathnam – erstwhile promoters of Zylog Systems.
• Pushpesh Kumar Baid and Hitesh Kumar Narendrabhai Patel, among others. 

Of the 15 offenders, the government noted that nine are linked specifically to large-scale financial frauds against public sector banks. 

Legal Framework: FEOA and PMLA in Action

The offenders were proceeded against under the Fugitive Economic Offenders Act, 2018, which allows a special PMLA court to confiscate properties of an economic offender involving sums over ₹100 crore who evades the process of law by remaining outside India. 

These actions run in parallel with cases under the Prevention of Money Laundering Act, 2002 (PMLA), enabling attachment and eventual confiscation of assets representing proceeds of crime. Together, FEOA and PMLA form the backbone of India’s strategy to deter economic fugitives and claw back assets.

How Much Has Been Recovered?

Data shared with MPs shows that as of 31 October 2025:

• Total dues from FEOs to PSBs: ₹58,082 crore
• Amount recovered: ₹19,187 crore
• Effective recovery ratio: ~33%

Recoveries have come through asset confiscation, sale of pledged securities, and resolution proceedings. However, a significant gap still remains between losses and realised value, reflecting the structural difficulty of recovering assets once offenders leave the country.

Parliamentary Question Puts Focus Back on Big Defaulters

The figures came in response to a Lok Sabha question seeking:

• The number of people notified as fugitive economic offenders under FEOA to date,
• Total financial loss to PSBs caused by these individuals, broken down name-wise and bank-wise, and
• Details of any settlements, including amounts and discounts, where applicable. 

Minister of State for Finance Pankaj Chaudhary confirmed that 15 people have been declared FEOs so far, highlighting how a relatively small number of individuals account for extremely large losses.

Implications for Banks, Regulators and Policy

The disclosure underscores several systemic points:

• Concentration of risk: A handful of large borrowers can inflict tens of thousands of crores in damage to the banking system.
• Importance of early-warning systems: Strengthened credit monitoring, fraud-detection and whistle-blower mechanisms are essential to catch stress signals earlier.
• Global asset-recovery challenge: Once offenders relocate abroad, recovery hinges on cross-border cooperation, extradition, and recognition of Indian court orders.
• Deterrence via confiscation: FEOA’s ability to confiscate domestic and overseas assets aims to change the cost-benefit calculus for potential fraudsters.

Key Takeaways

• 15 individuals have been declared Fugitive Economic Offenders under FEOA, 2018.
• They collectively owe ₹58,082 crore to public sector banks, including principal and interest.
• About ₹19,187 crore has been recovered so far, roughly one-third of the total dues.
• Top names include Vijay Mallya, Nirav Modi, and promoters involved in Sterling Biotech and Zylog Systems cases.
• The enforcement drive relies on combined use of FEOA and PMLA to pursue assets and deter future wilful defaulters.

About Shunyatax Global:
Shunyatax Global offers deep, compliance-driven coverage of fiinancial crime, cross-border taxation and regulatory enforcement. For expert insights on FEOA, PMLA, asset recovery and banking-sector risk, visit Shunyatax Global Services.