As many as 83 Look Out Circulars (LoCs) have been issued against promoters of companies who have defaulted on bank loans, to prevent them from leaving the country, the government informed Rajya Sabha on Wednesday.
"Immigration authorities can detain as well as prevent any person, including a willful defaulter, from leaving the country against whom an LOC has been issued," Minister of State for Home Nityanand Rai said in a written reply.
"The Bureau of Immigration has opened 83 LOCs till now at the behest of banks," he noted.
An LoC can be opened by the Bureau of Immigration in respect of Indian citizens and foreigners on the request of an authorised originator, which includes an officer, not below the rank of deputy secretary to the Government of India or an officer not below the rank of joint secretary in a state government, Rai said.
District magistrates or superintendents of police or designated officers of various law enforcing and security agencies or designated officers of Interpol or chairman and managing director or chief executive of all public sector banks, or as per directions of any criminal court in India, can request for issuance of LOC, he told the House.
Fugitive Economic Offenders Act, 2018 has been enacted for effective action against economic offenders fleeing Indian jurisdiction. It provides for attachment and confiscation of property of fugitive economic offenders and disentitles them from defending any civil claim.
Rai said the government has advised the public sector banks to obtain a certified copy of the passport of promoters/directors and other authorised signatories of companies availing of loan facilities of more than Rs 50 crore.
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