India cracks down on financial crime with record asset seizures and arrests
Indian authorities have stepped up efforts to combat financial crime, with recent convictions and asset seizures under anti-money laundering laws. The Enforcement Directorate (ED) has investigated over 1,000 bank fraud cases, leading to significant recoveries and legal action against high-profile offenders.
Since the introduction of the Fugitive Economic Offenders Act (FEOA) in 2018, eight individuals have been declared fugitive economic offenders, including two arrested abroad—one of them being Nirav Modi, detained in London in 2022. The ED has taken action under the Prevention of Money Laundering Act (PMLA), securing convictions for three accused in recent cases. Investigations covered 1,105 bank fraud cases, with proceeds of crime totalling Rs 64,920 crore attached.
Arrests reached 150 individuals, while 277 prosecution complaints were filed. Assets worth Rs 15,186 crore were confiscated, with nearly all—Rs 15,183 crore—returned to public sector banks. The FEOA, targeting offences of Rs 100 crore or more, enabled further measures such as property seizures, benami asset confiscations, and restrictions on capital-raising and voting rights.
In one case, the ED recovered Rs 104 crore with assistance from PMC Bank, where assets worth Rs 725 crore were seized under FEOA rules. The law was specifically designed to prevent economic offenders from evading justice by fleeing overseas.
By March 2026, two of the 33 individuals classified as fugitive economic offenders had been apprehended internationally. The crackdown reflects a broader push to recover misappropriated funds and hold offenders accountable under stricter financial regulations. The combined efforts under PMLA and FEOA have led to substantial asset recoveries and legal consequences for financial criminals. With ongoing investigations and international cooperation, authorities continue to target high-value fraud and money laundering cases across India's banking sector.
