ED transfers assets worth Rs 9,371 crore to public sector banks in Vijay Mallya, Nirav Modi, Mehul Choksi fraud case

Vijay Mallya, Nirav Modi and Mehul Choksi have collectively defrauded the Indian PSBs to the tune of Rs. 22,585.83 crore.

New Delhi: In what could be termed as a major win for the investigative agencies, the Enforcement Directorate (ED) has transferred attached assets worth Rs 8441.5 crore to consortium of Public Sector Banks who had lent money to fugitive liquor baron Vijay Mallya, diamantaire Nirav Modi and his uncle Mehul Choksi.

Vijay Mallya, Nirav Modi and Mehul Choksi have defrauded the Indian PSBs to the tune of Rs. 22,585.83 crore.

Till date, the ED has attach/seizeed assets worth Rs. 18,170.02 crore which included assets worth of 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. ED investigation has further found that substantial part of these assets were held in the names of dummy entities/ trusts/ third persons/ relatives of these accused and these entities were proxy of these accused to hold these assets. As on date, out of total attached/ seized assets of Rs. 18,170.02 crore under provisions of PMLA, assets worth of Rs 329.67 crore has been confiscated and assets worth Rs 9041.5 Crore, representing 40% of total loss to the bank have been handed over to the Public Sector banks.

Recently, the ED has transferred shares attached by it (worth of Rs. 6,600 crore approx.) to SBI led consortium as per order of PMLA Special Court, 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 Enforcement Directorate said on Wednesday.

Further realisation of Rs 800 crore by sale of shares is expected by June 25, the central probe agency said in a statement. Recently, it said, the agency had transferred shares attached by it (worth about Rs 6,600 crore) to the SBI-led consortium as per order of the special Prevention of Money Laundering Act (PMLA) Mumbai.

Mallya, 65, has lost the case against his extradition to India and he has "been denied permission to file appeal in the UK Supreme Court."

In May, Prime Minister Narendra Modi discussed extradition of Vijay Mallya and Nirav Modi with United Kindom. The issue of extradition of Vijay Mallya and Nirav Modi figured in a virtual summit between India and the UK, with Prime Minister Narendra Modi asserting that economic offenders should be sent back to the country at the earliest for trial. India has been pressing the United Kingdom to extradite Mallya and Modi to face trial in India for their alleged involvement in cases relating to financial fraud.

Meanwhile, Mehul Choksi, had mysteriously gone missing on May 23 from Antigua and Barbuda where he has been staying since 2018 as a citizen. The diamantaire was later detained in neighbouring island country of Dominica for illegal entry after a possible romantic escapade with his rumoured girlfriend.