ED Transfers PSBs and Govt, Assets Worth Rs15,113.91 Crore Belonging to Vijay Mallya, Nirav Modi and Mehul Choksi
Moneylife Digital Team 09 September 2022
The Directorate of Enforcement (ED) has filed 992 complaints and the value of assets it attached and confirmed by an adjudicating authority (AA) is worth Rs58,591 crore as on 31 March 2022. Further, the agency has returned to public sector banks (PSBs) and the Union government assets worth Rs15.113.91 crore seized from Vijay Mallya, Nirav Modi and Mehul Choksi, who defrauded these lenders. 
 
In a statement, ED says, "(Mr) Mallya, (Mr) Modi and (Mr) Choksi have defrauded PSBs by siphoning off the funds through their companies which resulted in total loss of Rs22,585.83 crore to the banks. As a result of the investigation conducted by ED, assets worth Rs19,111.20 crore have been attached under the provisions of the prevention of money laundering act (PMLA)." 
 
"Out of this, assets worth Rs15,113.91 crore have been restituted to the PSBs. Hence, 84.61% of the total defrauded funds in these cases have been attached and seized and 66.91% of total loss to the banks has been handed over to banks or confiscated to the government of India. Further, the consortium of banks led by State Bank of India (SBI) has realised Rs7,975.27 crore by sale of assets handed over to them by the ED," it added.  
 
Further, in its annual report from FY21-22, ED says, from 1 July 2005 to 30 November 2021, it has filed 4637 enforcement case information reports (ECIRs). During the same period, it recorded 907 prosecution complaints under the PMLA. 
 
ED issued 1608 orders for provisional orders for assets worth Rs96,868.85 crore. Out of this, the AA held that in 1,265 cases, assets worth Rs64207.35 crore were involved in money laundering. After that ED took possession of these assets by removing the 'provisional measure' tag and the offenders cannot enjoy the property or asset.
 
Source: ED Annual Report FY21-22
 
During the past five years, from FY16-17 to 30 November 2021, the agency issued 11252 summons and conducted searches in 572 cases under the PMLA. ED arrested 54 persons during this period, the annual report shows.
 
Source: ED Annual Report FY21-22
 
Last month, the Union government informed the Lok Sabha that ED recorded around 515 cases of bank fraud in public and private sector banks, under the provisions of PMLA from 2014 to 2022. 
 
Further, it has attached properties worth Rs47,099 crore in bank fraud cases and has filed prosecution complaints before the special courts in 115 cases, the lower house was informed.
 
In a written reply, the minister of state for finance says, "...out of the aforementioned 515 cases, 137 cases pertain to the bank frauds, wherein amount involved is more than Rs100 crore in each case. In certain cases of loan fugitives, ED has also attached assets worth Rs19,312 crore, up to 29 July 2022, under the provisions of PMLA, which is 85.50% of the defrauded amount of Rs22,586 crore in these cases." (Read: Bank Frauds: ED Registered 515 Cases, Attached Properties worth Rs47,099 Crore since 2014
 
Comments
Free Helpline
Legal Credit
Feedback