As per a leading business daily report the government will now put a check on wilful defaulters with loans over Rs. 50 crore from travelling abroad without prior permission. The committee appointed by the government has recommended amendment to the Passport Act as part of the clampdown on borrowers attempting at fleeing abroad without paying their dues.
The report cited one of the government official as saying, "It was recommended that Section 10 of the Indian Passport Act may be amended to provide that persons who are in wilful default of loans above a specified limit of debt may be treated as financial and economic risk in public interest".
The government panel chaired by Rajiv Kumar, secretary, Department of Financial Services in the Ministry of Finance has made such a suggestion. The report also highlights the fact that the government does not seek a complete ban as in some of the cases frequent foreign travel is required for business purposes.
The suggestion to amend the Passport Act, 1967 corresponds to the time when the government is struggling to bring back financial fraudsters including Vijay Mallya Nirav Modi and Mehul Choksi to the country.
In July, the parliament passed the Fugitive Economic Offenders Bill, 2018 that offers authority to confiscate and attach assets of fugitive economic offenders or loan defaulters who escape from the country.