ED Transfers Rs 9,371 Cr Assets Of Nirav Modi, Mallya & Choksi To Banks; FM Sitharaman Reacts

All the three accused had fled overseas after they defrauded public sector banks by siphoning off the funds through their companies which resulted in total loss of over Rs 22,000 crore.

(File Photos/ Getty)

New Delhi: The Enforcement Directorate (ED) on Wednesday transferred assets worth Rs 9,371 crore to several public sector banks that suffered losses in alleged frauds perpetrated by fugitive businessmen Nirav Modi, Mehul Choksi and Vijay Mallya. 

According to reports, the agency has claimed that 40 per cent of the money lost by banks in alleged Rs 22,000 crore frauds by the trio has been recovered so far. 

Modi, his uncle Choksi and Mallya are currently being investigated by central investigative agencies such as the ED and the Central Bureau of Investigation (CBI) after they cheated banks and these frauds have been categorised as among the country's "biggest criminal loan heist" till date.

Commenting on the development, Union Finance Minister Nirmala Sitharaman took to Twitter and said that Fugitives & economic offenders will be actively pursued. "Their properties attached & dues recovered," she added.

In a official statement, the central agency said it has given its low-down on two cases - the estimated Rs 13,000 crore fraud allegedly carried out by diamond trader Nirav Modi, his uncle Mehul Choksi and others in the Brady House branch of PNB in Mumbai and the about Rs 9,000 crore Kingfisher Airlines fraud triggered by Mallya. 

All the three accused had fled overseas after they defrauded public sector banks by siphoning off the funds through their companies which resulted in total loss of over Rs 22,000 crore (Rs 22,585.83 crore in definite numbers) to a clutch of banks.

The ED is currently probing these cases under criminal sections of the Prevention of Money Laundering Act (PMLA) and went on to attach and seize total assets worth Rs 18,170.02 crore in these two cases that included Rs 969 crore worth of properties 'located' abroad.

"The quantum of the attached and seized assets represent 80.45 per cent of the total bank loss of Rs 22,585.83 crore," the ED said.

The agency also informed that Debts Recovery Tribunal (DRT), on behalf of an SBI-led consortium that lent money to Mallya, sold fresh shares worth Rs 5,824.50 crore of United Breweries Limited (UBL).

Rs 1,060 crore worth of assets were 'restituted' to the banks earlier in the probe against Nirav Modi. 

The ED also got repatriated to the country assets like gold and diamond jewellery (of Modi and Choksi firms) from abroad to ensure they are not disposed off and are available to the banks and the government exchequer for seizure.

As on date, the ED said, assets worth Rs 9,041.5 crore, "representing 40 per cent of the total loss to the banks, have been handed over to public sector banks."