Over the past few years, India has seen a rise in the number of banking frauds. The reason behind the fraud can be attributed to various factors such as negligence of the authorities, absence of due diligence while giving out loans as well as rampant corruption among the hierarchy of the employees of the banks. Though, the government identified that the cause behind the rise of frauds could be due to the absence of a strict enforcement mechanism in the legal system of the country. Hence, they brought an ordinance before the President and introduced the Fugitive Economic Offenders Bill, which was later passed by the Lok Sabha in the monsoon session of 2018. This paper delves into the background of legislating this law with specific reference to the loan defaults and absconding of Mr. Vijay Mallya. Further, it states the chief highlights of this new piece of legislation followed by the analysis of the same.
This is an Open Access article distributed under the terms of the Creative Commons Attribution–NonCommercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.