ED transfers assets of Mallya, Nirav, Choksi worth Rs 8,441.5 crore to PSU banks

Even as the government awaits the extradition of economic offenders and fugitives Vijay Mallya, Nirav Modi and Mehul Choksi, there is some respite to the public sector banks that suffered losses due to bank frauds.

The Enforcement Directorate pursuing the money laundering cases against the trio has transferred attached assets worth Rs 8,441.5 crore to public sector banks.

The ED is hopeful that Mallya and Modi will be extradited from UK soon after the Westminster court ordered their extradition.

“Since, Mallya has been denied permission to file appeal in the UK Supreme Court, his extradition to India has become final,” said the ED officials.

However, the Central agency still has its fingers crossed on Choksi as the fugitive diamantaire has created legal tangles with his mysterious landing in Dominica.

With limited role in bringing the fugitives back to the country where extradition proceedings now depend heavily on how the governments in UK and Antigua and Barbuda respond, the ED is focussing on recovering the funds siphoned off by the fugitives.

Meanwhile, there is increased focus on fast-tracking the matters pending in courts against the trio and transferring the recovered assets and funds to the banks.

The ED had attached and seized assets worth of Rs. 18,170.02 crore, which is 80.45 per cent of total loss to banks in cases of Mallya, Modi and Choksi under the Prevention of Money Laundering Act.

According to the ED, Mallya, Modi and 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.

In Mallya’s case, recently, the ED had transferred shares attached by it (worth Rs. 6,600 crore approximately) to an SBI-led consortium as per order of PMLA Special Court in Mumbai. On Wednesday, the Debt Recovery Tribunal on behalf of the SBI-led consortium, sold shares of United Breweries Limited for Rs 5,824.50 crore.

Further realisation of Rs 800 crore by sale of shares is expected by June 25, said ED officials.

The ED has assisted the public sector banks in recovering Rs 1,357 crore by selling the shares earlier. As a result, the banks will realise a total amount of Rs 7,981.5 crore by end of this week through sale of a part of assets attached and seized by ED under the provisions of PMLA, said a statement issued by the agency.

After an FIR was filed by the CBI, the ED began its investigations where it found a web of domestic and international transactions and stashing of assets abroad. Investigations revealed that the three accused persons had used dummy entities for rotation and siphoning off of the funds provided by the banks.

Sources in ED said the agency had already attached and seized assets worth Rs. 18,170.02 crore, which included assets worth Rs. 969 crore located in foreign countries.

 Prosecution complaints were filed by the agency against all the three accused after completion of PMLA investigation.

Till date, out of total attached and seized assets of Rs. 18,170.02 crore under provisions of PMLA, assets worth of Rs 329.67 crore have been confiscated and assets worth Rs 9,041.5 crore, representing 40 percent of total loss to the banks, have been handed over to the public sector banks, said the ED statement.

Meanwhile, extradition requests have been sent for these persons to UK and Antigua and Barbuda.

ED officials said extradition of Mallya has been ordered by the Westminster Magistrates Court and confirmed by the UK High Court.

The Westminster Magistrates Court has ordered extradition of Nirav Modi as well. Modi has been in London Jail for last two years and three months on the basis of an extradition request by India. Both Modi and Mallya have also been declared fugitive economic offenders by PMLA Court in Mumbai.