Economic fugitives involved in bank frauds in the name of trading in diamonds are running rings around the country, virtually mocking India’s diplomatic heft in bringing them to justice. The revelation that Mehul Choksi has bought an Antiguan passport that gives him access to several countries is yet another blow to India’s efforts to nab criminal businessmen on the run. In well-planned manoeuvres, the diamantaires have placed themselves beyond the reach of Indian law. It might be a laborious process to try and apprise a small Caribbean nation like Antigua of the wrongs done by businessmen who have taken money from nationalised banks by questionable methods, like corrupting bankers into adventurous or even outright fraudulent lending. The surprising lack of controls that enabled a $2 billion fraud in using banks funds to trade was the most shocking part of this particular episode.
India’s 2018 bill against fugitive economic offenders is, however, a good step that might deter businessmen in future from “loot and scoot”. The attaching of all the properties of declared fugitives may be bearing results if it’s true Vijay Mallya is tempted to return to protect his assets that may be greater than the loans taken. The defrauders always seem to be a step ahead of the law, but by attaching properties and shares it may be possible to make some recoveries. India must be seen to be proactive in bringing the likes of Nirav Modi and Mehul Choksi to book. Only by diplomatic pressure at the highest levels can we hope to resolve the cases of prominent economic fugitives with the clout to “loot, scoot and stay put abroad”.
H10
