India’s banking system continues to bleed from massive unpaid loans left behind by some of the country’s biggest financial fugitives. According to a fresh disclosure in Parliament, nine major Fugitive Economic Offenders (FEOs) together owe banks an eye-watering Rs 58,082 crore, but lenders have managed to recover only about Rs 19,000 crore—barely one-third of the total.
The Ministry of Finance confirmed that 15 individuals have been formally designated as FEOs as of October 31, 2025, with nine of them involved in large-scale financial frauds that pushed banks into years of litigation and cross-border recovery battles.
SBI Hit the Hardest — But Recovers the Most
Among all lenders, the State Bank of India (SBI) has suffered the largest exposure, with over Rs 22,000 crore stuck in loans tied to major fugitives. Punjab National Bank (PNB) and Bank of India (BOI) follow closely, each facing deep financial scars from loan defaults.
Yet, SBI stands out for one reason — it leads the recovery charts, having clawed back nearly 52% of its total exposure. Banking analysts credit this to the strong recovery action in the Vijay Mallya case, where SBI headed the consortium of lenders and aggressively pursued asset liquidation in India and abroad.
Most other public sector banks are faring far worse, with recovery rates below 40%, reflecting the grim reality: once offenders flee India, the money rarely returns.
Vijay Mallya Tops the List: Biggest Dues, Highest Recovery
With a cumulative liability of nearly Rs 27,000 crore, Vijay Mallya remains India’s biggest defaulter. But there’s a twist — more than 56% of his dues have already been recovered, the highest among all FEOs.
The Sandesara family (Sterling Group), who collectively rank second in total exposure, show a drastically different picture: their recovery rate is stuck at just 17% despite years of litigation.
Nirav Modi, whose PNB LoU scam shook India in 2018, sits at the bottom with a recovery of just 7%, making it the worst-performing case among major fugitives.
Different Cases, Different Struggles
• Vijay Mallya
SBI and other consortium banks coordinated closely, enabling faster liquidations and higher recoveries.
• Sandesara Family
Loans were scattered across lenders, and international legal complications have slowed asset attachment and recovery.
• Nirav Modi
PNB, the main victim, continues to battle lengthy extradition procedures in the UK, delaying meaningful recovery.
OTS Settlements, Legal Battles and the Tough Road Ahead
Two fugitives have partly settled dues via One-Time Settlement (OTS), offering some relief.
The Sandesara data includes exposure to three individuals, each named separately under the FEO list.
Despite the government enacting the Fugitive Economic Offenders Act to block offenders from enjoying their illicit wealth, major challenges remain:
●Extradition cases drag on for years
●International asset tracing is slow and complex
●Liquidation of seized properties faces frequent legal hurdles
Still, progress in high-value recoveries—especially in the Mallya case—signals a stronger push from enforcement agencies and lenders working jointly to protect India’s financial ecosystem.
