Madras HC urges govt to allow banks to hold passports of loan-takers
The High Court’s suggestion comes at a time of increased concerns over instances of alleged loan defaulters fleeing the country
Moneycontrol News @moneycontrolcom
jan 1 2019
The Madras High Court has suggested the Centre amend passport rules so that banks and financial institutions can demand surrender of passports from those availing loans and prevent defaulters from fleeing the country, according to a report by The Times of India.
“It is suggested that in order to prevent defaulters from fleeing from justice and migrating to an alien country, the government is expected to modify rules regarding surrender of the passport of the person availing a loan to the concerned institution, so that the person cannot travel abroad without the knowledge of such financial institution,” Justice S Vaidyanathan said.
“It can also be made clear that till the loan is cleared, the passport will not be handed over and may be temporarily cancelled in case of failure. Passport Act and rules can be amended so that in case of renewal of a passport, necessary endorsement should be obtained from banks or suitable orders obtained from the jurisdictional court or appropriate forum,” Vaidyanathan added.
The suggestion was made by the High Court while dismissing a plea moved by S Mangalam, a suspended anganwadi worker, seeking direction from the court to authorities to reinstate her services, the report said.
The High Court’s suggestion comes at a time of increased concerns over instances of alleged loan defaulters fleeing the country.In 2018, alleged bank fraud fugitives Nirav Modi and Mehul Choksi left India before the Punjab National Bank (PNB) scam came to light.
The High Court’s suggestion comes at a time of increased concerns over instances of alleged loan defaulters fleeing the country
Moneycontrol News @moneycontrolcom
jan 1 2019
The Madras High Court has suggested the Centre amend passport rules so that banks and financial institutions can demand surrender of passports from those availing loans and prevent defaulters from fleeing the country, according to a report by The Times of India.
“It is suggested that in order to prevent defaulters from fleeing from justice and migrating to an alien country, the government is expected to modify rules regarding surrender of the passport of the person availing a loan to the concerned institution, so that the person cannot travel abroad without the knowledge of such financial institution,” Justice S Vaidyanathan said.
“It can also be made clear that till the loan is cleared, the passport will not be handed over and may be temporarily cancelled in case of failure. Passport Act and rules can be amended so that in case of renewal of a passport, necessary endorsement should be obtained from banks or suitable orders obtained from the jurisdictional court or appropriate forum,” Vaidyanathan added.
The suggestion was made by the High Court while dismissing a plea moved by S Mangalam, a suspended anganwadi worker, seeking direction from the court to authorities to reinstate her services, the report said.
The High Court’s suggestion comes at a time of increased concerns over instances of alleged loan defaulters fleeing the country.In 2018, alleged bank fraud fugitives Nirav Modi and Mehul Choksi left India before the Punjab National Bank (PNB) scam came to light.
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