In a bid to prevent big economic offenders like Vijay Mallya and Nirav Modi from fleeing the country, the Government has empowered PSU banks to request lookout circulars (LOCs) against wilful defaulters and fraudsters, officials said on Sunday.
The Home Ministry has also authorised the Serious Fraud Investigation Office (SFIO)to request LOCs if it feels the suspect may flee India.
The Ministry issued two circulars, authorising CMD or CEO of public sector banks and the SFIO to request designated authorities to issue LOCs against any wilful defaulter or fraudster if they think the person may flee the country.