The Finance Ministry has reportedly directed state-owned banks to obtain passport details of all borrowers, who have taken loans in excess of Rs. 50 crore, within 45 days with a view to preventing alleged fraudsters like Nirav Modi and Vijay Mallya from fleeing the country.
If the borrower does not have a passport then the bank must obtain a certificate in the form of declaration that the person does not have the passport and that the loan application form should be suitably modified to incorporate the passport details of borrowers.
This is being done so that the passport details will enable banks to take timely action and inform the relevant authorities to prevent fraudsters from fleeing the country.
Recently, the Cabinet approved the Fugitive Economic Offenders Bill, though it was announced in the Budget for 2017-18, has been hastened after Nirav Modi and his uncle Mehul Choksi allegedly defrauded state-owned Punjab National Bank of Rs. 12,700 crore and left the country while also refusing to cooperate with law enforcement agencies.
The bill provides for confiscating all the assets of absconding fraudsters and loan defaulters to recover dues. The union cabinet chaired by PM Narendra Modi also approved setting up of a National Financial Reporting Authority (NFRA) as an independent regulator for the auditors as well.
