Govt confiscates `15,839-cr assets from economic offenders

New Delhi Unclaimed deposits worth Rs48,461.44 crore pertaining to 16,79,32,112 accounts have been transferred by the banks to Depositor Education & Awareness Fund as on March 31, 2023, Parliament was informed on Tuesday.

Ministry of Corporate Affairs (MCA) has informed that the amount lying with Investor Education and Protection Fund, as on March 31, 2023, was Rs5,714.51 crore, Minister of State for Finance Bhagwat Karad said in a written reply in Rajya Sabha.

“Fugitive Economic Offender Act was enacted in 2018. The Directorate of Enforcement (ED) has informed that as on August 2, 2023, there are eight fugitive economic offenders who are wilful defaulters,” he said.

ED has further informed that as on August 2, 2023, proceeds of crime of fugitive economic offenders, amounting to Rs34,118.53 crore have been attached, out of which assets amounting to Rs15,838.91 crore have been confiscated and assets amounting to Rs15,113.02 crore have been restituted to the public sector banks, he said.

Replying to another question, Karad said, willful defaulters cannot get a fresh loan for 12 months after executing a compromise settlement. The cooling period of 12 months has been introduced as a general prescription for normal cases of compromise settlements, without prejudice to the penal measures applicable in respect of borrowers classified as willful defaulter or fraud, as per the RBI’s Master Circular on Willful Defaulters dated July 1, 2015, and the Master Directions on Fraud dated July 1, 2016, he said.