For once, the government can take initiatives against corruption and bribery in the finance sector to ensure the loans – this large in sum – are not approved without proper checking on multiple levels. Like for example, in Nirav Modi case, the letter of undertaking (LoU) was issued by fraudulent means by few people in Punjab National Bank. Till now, 10 employees in connection with the fraud have been suspended. Assumingly, there will be more.
Now imagine, if these things were checked on multiple levels by different authorities, and not just one group of professionals who could have easily been bribed and corrupted, this wouldn’t have happened.
It all comes down to the professional ethics—how trustworthy and honest the person in-charge is! Of course, this doesn’t take away the onus from defaulters like Mr. Modi and Mallya, but these powerful people will always take up fraudulent and illegal means to get things done for themselves. Who will stop them from doing this are the people who sits on important posts of banks, government offices and ministers. So these people at the lower level must be educated and trained to counter the instances of such frauds properly.
On the more technical level, the government must work closely with the Public Sector Banks to keep track of these large loans and recipients and identify which one can end up in default. They must guide the banks to avoid giving money to individuals and companies with not clean track record. Also, the government authorities must keep an eye on the possible defaulters to ensure they ***** them right before they are about to leave the country.
All being said, here’s a thing—the current government, and the past and upcoming ones— will never take any such action because the powerful industrialists and tycoons have many of these ministers in their pockets. Do you really think that Indian government is that incompetent in bringing these fled scammers like Nirav Modi and Vijay Mallya back in the country? That intent to bring these frauds back in the country is lacking. The government can easily work with other countries’ government and international organizations to get hold of these people. But they would never do that. Because it matters their vote bank politics and big money!