As of March 31, 2023, the banks had transferred unclaimed deposits of Rs 48,461.44 crore from 16,79,32,112 accounts to the Depositor Education & Awareness Fund, Parliament was informed on 8^th August.

In a written reply in Rajya Sabha, Minister of State for Finance Bhagwat Karad informed that the Ministry of Corporate Affairs has told him that the amount owing to the Investor Education and Protection Fund as of March 31, 2023, is Rs 5,714.51 crore.

"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.

In addition, ED has informed that as on August 2, 2023, proceeds of crime of fugitive economic offenders, amounting to Rs 34,118.53 crore have been attached, out of which assets amounting to Rs 15,838.91 crore have been confiscated and assets amounting to Rs 15,113.02 crore have been restituted to the public sector banks, he said.

In response to another question, Karad stated that wilful defaulters are prohibited from obtaining a new loan for 12 months following the execution of 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 wilful defaulters or fraud, as per the RBI's Master Circular on Wilful Defaulters dated July 1, 2015, and the Master Directions on Fraud dated July 1, 2016, he said.

According to him, all borrowers with aggregate exposure of Rs 5 crore and more are reported to the Central Repository of Information on Large Credits (CRILC) by Scheduled Commercial Banks (SCBs) and Urban Cooperative Banks (UCBs), both of which have asset sizes of Rs 500 crore or above.

Image source: PTI