ED Transfers Rs.9K Cr to Banks Seized from Three Fugitive Businessmen

The Enforcement Directorate has seized assets worth Rs 18,170 crore, which is 80% of the total losses incurred by the banks, in cases related to fugitive businessmen Vijay Mallya, Nirav Modi, and Mehul Choksi.

About half of the assets have been transferred to the banks and Centre.

The Enforcement Directorate on Wednesday said that not only has the assets been seized, but a significant share, Rs 9,371.17 crore, has been transferred to the public sector banks and the central government.

According to a report of India Today, the total amount defrauded by Vijay Mallya, Nirav Modi, and Mehul Choksi is Rs 22,585.83 crore out of which properties worth Rs 18,170 crore have been attached by the Enforcement Directorate.

As of today, assets worth Rs 8,441 crore have been transferred to the banks and another Rs 800 crore is to be transferred on June 25 as per the court orders. The further realization of Rs 800 crore by sale of shares is expected by June 25, said the probe agency.

The agency has transferred shares attached by it (worth Rs 6,600 crore) to the SBI-led consortium of banks as per the orders of the PMLA Special Court in Mumbai.

The debts recovery tribunal (DRT) has sold shares worth over Rs 5,800 crore of United Breweries Limited (UBL) that were earlier attached under the anti-money laundering law as part of an alleged bank fraud probe against fugitive liquor baron Vijay Mallya.

“The Directorate of Enforcement has taken swift action by unearthing the myriad web of domestic and international transactions and stashing of assets abroad. The 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,” said the officials.

During its investigation, the agency took steps to attach and seize assets worth Rs 18,170.02 crore which included assets of Rs 969 crore located in foreign countries. The quantum of the attached and seized assets represents 80.45% of the total bank loss of Rs. 22,585.83 crore.

Moreover, with the help of law enforcement agency, public sector banks have already recovered Rs 1,357 crore of the losses by selling the shares earlier. Thus, the banks shall be realising a total amount of Rs 7,981.5 crore by this week through the sale of a part of assets that have been attached or seized by the agency under the provisions of PMLA.

As of today, the total attached and seized assets under the provisions of PMLA are worth Rs 18,170.02 crore. Assets worth Rs 329.67 crore have been confiscated and assets worth Rs 9,041.5 crore, representing 40% of the total loss to the bank, have been handed over to the banks.

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