Recovery of Loans

In News

• Recently, the Finance Minister stated that banks have recovered Rs 13,100 crores from assets sales of defaulters like Vijay Mallya, Nirav Modi.

About

• This came as a reply  to a discussion on the second batch of Supplementary Demands for Grants which was approved by the Lok Sabha amid uproar by the Opposition over various issues.
• The Supplementary Demands for Grants authorised the government to spend an additional Rs 3.73 lakh crore during the current fiscal.

Supplementary Demands for Grants

• Meaning: 
  • The additional grant required to meet the required expenditure of the government is called Supplementary Grants. .
  • When actual expenditure incurred exceeds the approved grants of the Parliament, the Ministry of Finance and the Ministry of Railways presents a Demand for Excess Grant.

Government’s stand

• Edible oil and fuel price rise: 
  • The government is taking measures to cool down prices of edible oil and other essential commodities  through the EGOM (Empowered Group of Ministers) for taking care of essential goods. 
  • Soon the problem of edible oil price and also some of the essential edible items will be addressed.
• Public sector banks defaulters:
  • Public sector banks together have effected a recovery of about Rs 5.49 lakh crore over the last seven financial years. 
  • So, these people who are defaulters, who have fled the country, we have got their money back and put it to the public sector banks and therefore the banks are safer today.
• Funding and financial position:
  • From the National Disaster Response Fund (NDRF), funds are being provided and providing an extra Rs 15,000 crore for emergency COVID-19 response. 
  • The financial position of the states is also reflected in the fact that the overall cash balance of states as on November 30, 2021 was Rs 3.08 lakh crore approximately, fairly comfortable position.
• Cash balance of states:
  • The states have a substantial cash balance with them and there are only a few exceptions.
  • Out of 28 states, she said, only two states are having negative cash balances.

Fugitive Economic Offenders Act, 2018

• The Act aims to help confiscate assets of high-value economic offenders absconding from India till they submit to the jurisdiction of the appropriate legal forum.
• As per the law, a ‘fugitive economic offender’ means:
  • Any individual against whom a warrant for arrest in relation to an economic offence has been issued and the person has left the country and refuses to return to India to face criminal prosecution.
  • Also, the value of the offence is at least Rs. 100 crore.
• Procedure to be followed: 
  • The investigating agencies have to file an application in a Special Court under the Prevention of Money-Laundering Act containing details of the properties to be confiscated, and any information about the person’s whereabouts.
  • The Special Court will issue a notice for the person to appear at a specified place and date at least six weeks from the issue of notice.
  • Proceedings will be terminated if the person appears. If not the person would be declared as a Fugitive Economic Offender based on the evidence filed by the investigating agencies.
  • The person who is declared as a Fugitive Economic Offender can challenge the proclamation in the High Court within 30 days of such declaration according to the Fugitive Economic Offenders Act, 2018.
• Salient features of the Bill:
  • Application before the Special Court for a declaration that an individual is a fugitive economic offender;
  • Attachment of the property of a fugitive economic offender;
  • Issue of a notice by the Special Court to the individual alleged to be a fugitive economic offender;
  • Confiscation of the property of an individual declared as a fugitive economic offender resulting from the proceeds of crime;
  • Confiscation of other  property belonging to such offender in India and abroad, including Benami property;
  • disentitlement of the fugitive economic offender from defending any civil claim;
  • An Administrator will be appointed to manage and dispose of the confiscated property under the Act.

Image Courtesy: Times 

Sources: IE