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Attached assets worth crores of Mallya, Choksi and Nirav Modi transferred to PSU banks: ED

Vijay Mallya, Nirav Modi, and Mehul Choksi had allegedly defrauded various PSBs by siphoning off the funds through their companies, resulting in a total loss of Rs. 22,585.83 crore to the banks.

Attached assets worth crores of Mallya, Choksi and Nirav Modi transferred to PSU banks: ED-dnm
Author
Bengaluru, First Published Jun 23, 2021, 4:33 PM IST
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The Directorate of Enforcement has transferred attached assets worth Rs 8,441.5 crore to public sector banks who suffered losses due to fraud by fugitive businessmen Vijay Mallya, Mehul Choksi and Nirav Modi.

“The agency not only seized assets worth Rs 18,170.02 crore (80.45% of total loss to banks) in the case of Vijay Mallya, Nirav Modi and Mehul Choksi under PMLA but also transferred a part of attached/seized assets of Rs 9,371.17 crore to the PSBs and central government," ED said.

After the Enforcement Directorate transferred a portion of attached assets in cases of Vijay Mallya, Nirav Modi, and Mehul Choksi to Public Sector Banks (PSBs) and the Central Government, the lawyer of Mehul Choksi has issued a statement on Wednesday and claimed that the ED has indeed attached assets much more than the money due to the banks."

Advocate Vijay Aggarwal, in the Mehul Choksi case, said, "ED has indeed attached assets much more than the money due to the banks. Further, if one looks at the principal amount and the kind of haircut banks are taking in NCLT (National Company Law Tribunal) or otherwise in OTS, in this case, banks will recover more than a hundred per cent of the principal as well as interest."

"However, for the people, who have been declared fugitive, I have my doubts as to how will banks get the money as in the Fugitive Economic Offenders Act. There is no provision to give the money to the victims and the money is confiscated by the central government. However, in the prevention of money laundering act, there is an amendment in 2019 in the prevention of money laundering restoration of property rules 2016, now bank as a victim can approach the special Judge PMLA and seek the property seized to satisfy their dues," he added.

An ED statement on Wednesday said Vijay Mallya, Nirav Modi and Mehul Choksi have defrauded Public Sector Banks by siphoning off the funds through their companies, which resulted in a total loss of Rs 22,586 crore to the banks.

Elaborating on the development, Union commerce and industries minister Piyush Goyal said, “Bringing economic offenders to book and ensuring recovery of public money, assets worth more than 80% of Bank loss in cases of Vijay Mallya, Nirav Modi and Mehul Choksi have been attached/seized."

Warning fugitives, finance minister Nirmala Sitharaman said that economic offenders will be actively pursued; their properties attached, and dues recovered.

ED's investigation based on FIR by the Central Bureau of Investigation (CBI) once and for all proved that the three accused used dummy entities controlled by them, for rotation and siphoning off the funds provided by the banks.

The seized assets worth Rs. 18,170.02 crore includes assets worth Rs. 969 crore located in foreign countries.

Prosecution complaints, along with extradition requests to the United Kingdom (UK), Antigua, and Barbuda, have been filed against all the three accused after the completion of the PMLA investigation, the release informed.

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