To take care of the new incarnations of
economic offenders like Vijay Mallya and Nirav Modi who quickly disappeared
after their offenses became cognizable, the government has empowered PSBs to
request lookout circulars (LOCs) against wilful defaulters and fraudsters. The Home Ministry has also authorized the
Serious Fraud Investigation Office (SFIO), a statutory corporate fraud
investigation agency, to request LOCs if it feels the suspect may escape from
India. The ministry issued two circulars recently,
authorizing chairman-cum-managing directors or chief executive officers of
public sector banks and the SFIO to request designated authorities to issue
LOCs against any wilful defaulter or fraudster if they think the person may
flee the country. The CMDs and CEOs of PSU banks can now ask
the Home Ministry, Ministry of External Affairs, Customs and Income Tax
Departments, Directorate of Revenue Intelligence, CBI, regional passport
officers and police to issue a LOC to alert immigration check posts to stop
anyone leaving India.
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PSBs authorized to request LOCs against defaulters
By IndianMandarins - 2019-01-29 10:19:01
To take care of the new incarnations of
economic offenders like Vijay Mallya and Nirav Modi who quickly disappeared
after their offenses became cognizable, the government has empowered PSBs to
request lookout circulars (LOCs) against wilful defaulters and fraudsters.
The Home Ministry has also authorized the Serious Fraud Investigation Office (SFIO), a statutory corporate fraud investigation agency, to request LOCs if it feels the suspect may escape from India.
The ministry issued two circulars recently, authorizing chairman-cum-managing directors or chief executive officers of public sector banks and the SFIO to request designated authorities to issue LOCs against any wilful defaulter or fraudster if they think the person may flee the country.
The CMDs and CEOs of PSU banks can now ask the Home Ministry, Ministry of External Affairs, Customs and Income Tax Departments, Directorate of Revenue Intelligence, CBI, regional passport officers and police to issue a LOC to alert immigration check posts to stop anyone leaving India.
