India Identifies 15 Fugitive Economic Offenders Responsible for Over Rs 57,000 Crore Bank Losses
The Ministry of Finance informed the Lok Sabha on Monday that 15 individuals, including Vijay Mallya, Nirav Modi, and Nitin Sandesara, have been officially declared Fugitive Economic Offenders (FEOs) as of October 31. These individuals, who are associated with high-profile corporate groups such as Kingfisher Airlines, Firestar International, and Sterling Biotech, collectively caused a massive financial loss of more than Rs 57,000 crore to several public sector banks.
According to the statement presented by the Minister of State for Finance, Pankaj Chaudhary, the Special Court designated under the Fugitive Economic Offenders Act, 2018 (FEOA), confirmed these individuals as FEOs based on the scale of fraud and their continued absence from India despite legal proceedings.
The financial loss includes Rs 26,645 crore as the principal amount and Rs 31,437 crore accrued as interest from the date the loans turned into NPAs until October 31, 2025. The Minister also stated that banks have recovered a combined amount of Rs 19,187 crore from these offenders through various recovery mechanisms.
Key Moments
The government’s update in Parliament highlighted the role of multiple banks that were significantly impacted. Major lenders such as State Bank of India, Punjab National Bank, Bank of Baroda, UCO Bank, Canara Bank, Indian Overseas Bank, and Union Bank of India were among those affected by these large-scale corporate defaults.
The briefing also provided individual case details, giving a clearer picture of the total losses and recoveries:
State Bank of India remains the most affected in the case of Vijay Mallya. The former liquor baron caused a principal loss of Rs 6,848 crore and an interest loss of Rs 11,960 crore. Despite the enormity of the dues, SBI has recovered Rs 10,814 crore so far, demonstrating one of the highest recovery rates among Mallya-related cases.
Punjab National Bank disclosed major losses connected to Nirav Modi and his companies. The infamous non-borrowal fraud involving Nirav Modi caused an overall loss of Rs 6,799 crore. Against this amount, the bank managed to recover Rs 93.21 crore. Additionally, Firestar International, owned by Nirav Modi, contributed further losses exceeding Rs 297 crore in principal and Rs 324 crore in interest. Recoveries in this segment amounted to more than Rs 163 crore.
In addition, Vijay Mallya caused PNB losses of Rs 899.56 crore in principal and Rs 324.52 crore in interest. Recoveries in this segment reached Rs 946.17 crore, which indicates that the bank has managed to recover more than the outstanding dues in this particular case.
Bank of Baroda also subjected major losses to both Mallya and Nirav Modi. The bank reported a loss of Rs 494.33 crore in principal and Rs 1,341.87 crore in interest due to Mallya’s defaults. Recoveries from these accounts touched Rs 995.55 crore. From the Firestar Group linked to Nirav Modi, Bank of Baroda faced losses of Rs 301.98 crore (principal) and Rs 206.40 crore (interest), with recoveries standing at Rs 99.24 crore.
Apart from these well-known offenders, names like Sudharshan Venkataraman, Ramanujam Sesharathinam, Chetan Sandesara, and Pushpesh Kumar Baid were also featured among the top 15 offenders responsible for multi-crore loan defaults affecting various banks under consortium arrangements.
Reactions
Although the session did not include direct remarks from the individuals involved, officials and financial analysts reiterated that the identification of FEOs is a crucial step in strengthening India’s legal and financial response to large-scale bank fraud. The Ministry emphasized that the FEO Act has played a central role in accelerating the attachment of assets, expediting court procedures, and enabling banks to reclaim funds that otherwise remained inaccessible for years.
Industry experts highlighted that disclosures like these help maintain transparency, strengthen trust in public economic institutions, and reinforce the government’s stance against financial crimes. By updating Parliament with detailed figures, the Ministry reassured stakeholders that recovery efforts are ongoing and that offenders cannot evade accountability with ease.
Impact
The announcement provides an updated assessment of India’s fight against financial fraud and economic offences, especially involving individuals who have fled the country. The magnitude of the losses, exceeding Rs 57,000 crore in both principal and interest, paints a clear picture of the economic strain placed on public sector banks, many of which are already managing stressed assets.
The recoveries reported—totaling Rs 19,187 crore—reflect partial progress but also expose the remaining gap that financial institutions must still address. These proceedings underline the significance of the FEOA in ensuring that offenders cannot exploit the Indian banking system and subsequently escape jurisdiction.
In addition to immediate financial implications, the classification of these 15 individuals as FEOs sends a strong message to the corporate sector. It highlights the government’s commitment to enforcing legal accountability, preventing systemic fraud, and promoting ethical corporate governance.
The government’s update in the Lok Sabha marks an important milestone in ongoing efforts to combat high-value financial fraud. By publicly identifying 15 Fugitive Economic Offenders and providing detailed figures regarding losses and recoveries, the Ministry of Finance reinforced the seriousness with which it approaches economic misconduct.
As banks continue recovery efforts and legal proceedings progress internationally, this development stands as a reminder of the importance of vigilance, regulatory oversight, and international cooperation in tackling financial crime.
Final Thoughts from TheTrendingPeople
The detailed disclosure on fugitive economic offenders is a significant step in strengthening India’s economic integrity. The scale of losses highlights the importance of stringent financial checks and stronger regulatory monitoring. As banks continue to work toward recovering dues and courts pursue further action, this update reflects a growing commitment to ensuring accountability at every level. The fight against financial crime remains long, but the latest progress signals that the banking system and enforcement agencies are more aligned than ever in their mission to protect public assets and restore trust in financial governance.