In a heartening news, Enforcement Directorate (ED) has seized assets worth over Rs 18,000 crores in cases pertaining to Vijay Mallya, Nirav Modi and Mehul Choksi who are absconding abroad after duping public sector banks in India.
This amounts to over 80.45% of the total loss to banks recovered under the Prevention of Money Laundering Act (PMLA). As a follow up, the ED has also transferred seized/attached assets worth Rs 9371.17 crores to the Public Sector banks and Central government.
“Vijay Mallya, Nirav Modi, and Mehul Choksi have defrauded Public Sector Banks by siphoning off the funds through their companies which resulted in total loss of Rs. 22,585.83 crore to the banks.” The financial watchdog stated that acting on the CBI FIR, the ED had unearthed a 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.”
In all, the Enforcement Directorate has attached/seize assets worth Rs.18,170.02 crore which included assets worth Rs. 969 crore located in foreign countries. The quantum of the attached and seized assets represents 80.45% of total bank loss of Rs. 22,585.83 Crore, it said.
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
In Vijay Mallya’s case, the ED stated it has already transferred Rs 6600 crores worth of shares to SBI-led consortium as per the directive of PMLA Special Court.
“Today, the Debts Recovery Tribunal (DRT) on behalf of SBI led consortium, has sold shares of United Breweries Limited for Rs 5824.50 Crore. Further realisation of Rs 800 Crore by sale of shares is expected by 25th of June,” it stated.
Vijay Mallya, a liquor baron and former MP of the Rajya Sabha, is presently in London facing charges of fraud and money-laundering pertaining to the Rs 9,000 crores borrowed by Kingfisher Airlines (KFA) from several banks.
A consortium of 11 banks that gave Mallya loans, led by State Bank of India (SBI) had estimated a loss of over Rs 6,200 crore due to Mallya’s bad loans and sought restoration of his properties seized by the ED.
Nirav Modi who was arrested on March 19, 2019, has been accused to be the “principal beneficiary” of the fraudulent issuance of letters of undertaking (LoUs) as part of a conspiracy to defraud PNB to the extend of Rs 13,578 crore.
Owner of Gitanjali jewelers, Mehul Choksi along with his nephew Nirav Modi is accused of duping the Punjab National Bank and siphoning off the money using letters of undertaking.
The ED said extradition requests have been sent for these persons to UK and Antigua and Barbuda.
Vijay Mallya has been ordered to be extradited by the Westminister Magistrates Court and confirmed by the UK High Court. Mallya has been denied permission to file appeal in the UK Supreme Court.
Nirav Modi too has been ordered to be extradited to India by the Westminister Magistrates Court. He has been in London jail for two years and three months on the basis of extradition request by India.
Nirav Modi and Vijay Mallya have also been declared Fugitive Economic Offenders by a PMLA Court in Mumbai.
