zlacker

India has a similar law. You will be detained from leaving the country even if you are not the principal borrower and you've just stood as a guarantor for someone else's loan the bank can issue a lookout circular without even approaching a court. One of my offshore resources was arrested at the airport[1] even though he was not the pricipal borrower of the loan.

The funny thing about these incidents is that, all these countries want to have startup hubs, all the while forgetting that the very definition of a startup means risk taking where 9 out 10 companies go bankrupt.

One of the reasons I still think the west (UK, EU, US) are still some of the best countries to have a thriving business environment. You can be assured (at least a vast majority of the time) that no crazy laws like these would be enacted that would encroach on fundamental rights of a citizen over a civil issue.

[1] https://economictimes.indiatimes.com/news/politics-and-natio...

>>victor+(OP)
The problem is this guy raised money for a project in Dubai and used it for a project in Pakistan. If you fundraised for a startup building robots in the US and instead used the money to buy real estate in Canada, you would be convicted of fraud as well wherever you are.