Are Vijay Mallya and Nirav Modi Among the 15 Fugitive Economic Offenders for Bank Frauds?
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Synopsis
In a shocking revelation, 15 individuals, including notorious figures Vijay Mallya and Nirav Modi, have been declared Fugitive Economic Offenders for bank frauds causing colossal losses. The Lok Sabha has been informed of the staggering financial implications as the government seeks justice and recovery from these offenders. What does this mean for the future of banking in India?
Key Takeaways
- Vijay Mallya and Nirav Modi are among 15 declared Fugitive Economic Offenders.
- Financial losses exceed Rs 57,000 crore across multiple banks.
- Legal actions are being pursued under the Fugitive Economic Offenders Act, 2018.
- Recoveries amount to Rs 19,187 crore as of October 31, 2025.
- Implications for banking regulations and trust are significant.
New Delhi, Dec 1 (NationPress) Vijay Mallya of Kingfisher Airlines, Nirav Modi from Firestar International, and Nitin Sandesara of Sterling Biotech and Sterling SEZ have been identified as part of a group of 15 individuals recognized as Fugitive Economic Offenders (FEOs) as of October 31, having collectively caused losses exceeding Rs 57,000 crore to various banks, as stated in a report to the Lok Sabha this past Monday.
The Minister of State for Finance, Pankaj Chaudhary, reported that these 15 individuals were designated FEOs by a Special Court under the Fugitive Economic Offenders Act, 2018 (FEOA), which has resulted in a principal financial loss of Rs 26,645 crore to banks by October 31, 2025.
According to the MoS, the accrued interest loss from the date of NPA until October 31 amounts to Rs 31,437 crore.
As of the same date, the total amount recovered from these 15 individuals has reached Rs 19,187 crore.
Other notable offenders among this group include Sudharshan Venkataraman and Ramanujam Sesharathinam of Zylog Systems, as well as Nitin Sandesara and Chetan Sandesara of Sterling Biotech, and Pushpesh Kumar Baid.
The banks affected by these actions include notable institutions such as the State Bank of India, Punjab National Bank, Bank of Baroda, and others.
Specifically, Vijay Mallya's actions against SBI resulted in a principal loss of Rs 6,848 crore and an interest loss of Rs 11,960 crore. As of October 31, 2025, SBI has recovered Rs 10,814 crore from Mallya.
For PNB, the fraud involving Nirav Modi amounts to Rs 6,799 crore, with only Rs 93.21 crore recovered. Additionally, Firestar International Limited led to another loss of over Rs 297 crore (principal) and more than Rs 324 crore (interest), with recoveries over Rs 163 crore.
Mallya has also incurred a loss of Rs 899.56 crore (principal) for PNB, with an interest of Rs 324.52 crore, and recoveries of Rs 946.17 crore.
Similarly, Bank of Baroda faced losses in crores due to both Mallya and Modi, with Mallya causing a loss of Rs 494.33 crore (principal) and Rs 1,341.87 crore (interest), while Nirav Modi, representing the Firestar Group, resulted in losses of Rs 301.98 crore (principal) and Rs 206.40 crore (interest), with recoveries of Rs 99.24 crore.
Point of View
I believe this situation underscores the urgent need for stringent measures against financial fraud. The identification of high-profile offenders not only calls for accountability but also highlights the vulnerabilities within our banking system. The nation's trust in financial institutions hangs in the balance, and it is imperative that we address these issues with transparency and diligence.
NationPress
01/12/2025
Frequently Asked Questions
Who are the Fugitive Economic Offenders mentioned?
The Fugitive Economic Offenders include Vijay Mallya, Nirav Modi, and Nitin Sandesara among others, who have caused significant financial losses to banks.
What is the total financial loss caused by these offenders?
The total financial loss caused by these 15 offenders amounts to over Rs 57,000 crore.
How much has been recovered from these offenders?
As of October 31, 2025, a total of Rs 19,187 crore has been recovered from these offenders.
What actions are being taken against these offenders?
The offenders have been declared under the Fugitive Economic Offenders Act, 2018, and legal proceedings are underway for recovery.
Which banks have been affected by these frauds?
The banks affected include State Bank of India, Punjab National Bank, Bank of Baroda, and several others.
