₹58,000 Crore Owed by Fugitive Economic Offenders in India, Vijay Mallya-Nirav Modi Top the List

Fifteen individuals declared fugitive economic offenders collectively owe more than ₹58,000 crore to Indian public sector banks. The government reported that only about one-third of this amount has been recovered so far. The Union finance ministry provided a written reply in Lok Sabha. It mentioned that recoveries till October 31, 2025, stood at ₹19,187 crore. Total dues amounted to ₹58,082 crore, leaving roughly ₹38,895 crore still outstanding.

Overall dues and recovery

The finance ministry informed Parliament that the total exposure of public sector banks to fugitive economic offenders is ₹58,082 crore. This amount comprises ₹26,645 crore in principal and ₹31,437 crore in accumulated interest as of October 31, 2025. Of this, banks have managed to recover ₹19,187 crore. This amount is around 33% of the total dues. The balance remains unpaid.

Number of offenders and legal framework

The reply states that 15 individuals have been declared Fugitive Economic Offenders (FEOs). This was done by a special court under the Fugitive Economic Offenders Act, 2018. Of these, nine are linked to large-value frauds involving public sector banks. This highlights the concentration of losses in a handful of high-profile cases. ​

Vijay Mallya’s Kingfisher exposure

Accounts linked to Vijay Mallya and his defunct Kingfisher Airlines represent one of the largest single exposures in the list. State Bank of India has reported principal dues of ₹6,848.28 crore from these accounts, which rise to ₹11,960.05 crore after adding interest, with other state-owned lenders also reflecting unpaid sums linked to the same group.

Nirav Modi and PNB fraud

Nirav Modi, who is a fugitive diamantaire, owes more than ₹7,800 crore in principal to various banks. This debt is through entities such as Firestar and associated diamond firms. The single biggest entry against him is a ₹6,799.18 crore exposure recorded by Punjab National Bank. This is under the “non-borrowal fraud” category. Additional amounts were flagged by SBI, Bank of India, Canara Bank, Indian Bank, and others. ​

Sandesara-linked companies’ liabilities

Entities associated with the Sandesara family include Sterling Biotech, Sterling SEZ, and Sterling Global Oil Resources. These entities figure across multiple loan accounts in several public sector banks. Major exposures include dues of about ₹1,392.78 crore reported by Bank of India and ₹982.50 crore by State Bank of India, among other outstanding amounts.

Also read: Fugitive Businessman Mehul Choksi Arrested in Belgium on India’s Extradition Request

One-time settlements and policy stance

The government informed the House that only two FEO-related accounts have seen One-Time Settlements so far. These accounts are Nitin and Chetan Sandesara with Indian Bank, and Sterling Global Oil Resources Pvt Ltd with SBI. A question was asked about the framing of a new policy. The policy would stop economic offenders from fleeing the country. In response, the ministry clarified. The finance ministry stated that no such proposal is currently under consideration.

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