New Delhi: India may stop wilful defaulters with loans exceeding Rs 50 crore from travelling overseas without prior approval as part of a crackdown on promoters looking to leave the country without meeting repayment obligations.
The recommendation has been made by a committee headed by financial services secretary Rajiv Kumar that was formed to suggest ways of preventing this from happening.
“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,” said a government official, adding that the specified limit may be set at.`50 crore. “This is still being discussed.” Section 10 deals with the impounding and revocation of passports.
In March, the central government had directed banks to seek the passport details of borrowers taking loans of Rs 50 crore and more.