ED transfers attached assets worth Rs 8441.5 cr to PSBs which suffered losses due to bank fraud by Vijay Mallya, Nirav Modi and Mehul Choksi

by Jitendra Sharma

India’s Enforcement Directorate (ED) has transferred assets worth Rs 8441.5 cr to public sector banks including the State Bank of India (SBI). These assets were attached by the ED and belong to Vijay Mallya, Nirav Modi and Mehul Choksi. 

Vijay Mallya, Nirav Modi and Mehul Choksi. who have been declared fugitives have defrauded Public Sector Banks by siphoning off funds through their companies. The total estimated loss for the state-run banks stands around Rs 22,585.83 cr. 

Finance Minister Nirmala Sitharaman today took to Twitter to tweet about the the recovery. "Fugitives & economic offenders will be actively pursued; their properties attached & dues recovered. #PSBs have already recovered ₹1357 Cr by selling such shares," she said. "A total of ₹9041.5 Cr shall be realised by banks through sale of such attached assets," the tweet further said.

See Tweet Here:

Fugitives & economic offenders will be actively pursued; their properties attached & dues recovered.#PSBs have already recovered ₹1357 Cr by selling such shares.
A total of ₹9041.5 Cr shall be realised by banks through sale of such attached assets.https://t.co/e6F7n8drdl https://t.co/Jw96WlfjHX

— Nirmala Sitharaman (@nsitharaman) June 23, 2021

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The development comes in the wake of FIR filed by the Central Bureau of Investigation (CBI), wherein the Directorate of Enforcement has taken swift action by unearthing myriad web of domestic and international transactions and stashing of assets abroad.  

Investigation has also irrevocably proved that these three accused persons used dummy entities controlled by them for rotation and siphoning off the funds provided by the banks. 

The ED has also attached/seized assets worth Rs 18,170.02 cr which include properties worth of Rs 969 cr located in foreign countries. It is estimated that the total worth of the attached assets account for 80.45 per cent of the bank losses of Rs 22,585.83 cr. 

Recently, the ED transferred attached shares worth of Rs 6,600 cr to SBI led consortium as per order of PMLA Special Court, Mumbai. Today, the Debts Recovery Tribunal (DRT) on behalf of SBI led consortium, has sold shares of United Breweries Limited for Rs 5824.50 cr. 

Further realisation of Rs 800 Crore by sale of shares is expected by 25 June 2021.  

After ED’s intervention, Public Sector Banks have been able to recover Rs 1357 cr by selling the shares. 

This takes the total realisation amount through sale of a part of assets attached/seized by ED under the provisions of PMLA to Rs 9041.5 cr. 

As on date, out of total attached/ seized assets of Rs 18,170.02 cr under provisions of PMLA, assets worth of Rs 329.67 cr has been confiscated and assets worth Rs 9041.5 Crore, representing 40 per cent of total loss to the bank have been handed over to the Public Sector banks. 

The investigation by the ED has proved that substantial part of these assets were held in the names of dummy entities/ trusts/ third persons/ relatives of these accused and these entities were proxy of these accused to hold these assets. 

Prosecution Complaints were filed against all the three accused after completion of PMLA investigation. The government has also sent extradition requests for Mallya, Modi and Choksi to UK and Antigua and Barbuda.  

The extradition of Mallya has been ordered by the Westminster Magistrates Court and confirmed by the UK High Court. Since, Mallya has been denied permission to file appeal in the UK Supreme Court, his extradition to India has become final. 

The Westminster Magistrates Court has ordered extradition of Nirav Modi to India. It is pertinent to mention here that Nirav Modi has been in London Jail for last two years and three months based on extradition request by India.  

Modi and Mallya were declared Fugitive Economic Offenders by PMLA Court in Mumbai.