Banks Get Rs 9k Cr Assets Belonging to Nirav Modi, Choksi, Mallya

The assets were transferred to state-run banks to realise the losses on account of the fraud committed against them.

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The Enforcement Directorate (ED) on Wednesday, 23 June, stated that it has handed over assets worth Rs 9,371 crore belonging to fugitive businessmen Vijay Mallya, Nirav Modi, Mehul Choksi to state-run banks to realise the losses on account of the fraud committed against them.

The ED said that 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.

The ED has booked the three on the basis of the FIR filed by the Central Bureau of Investigation (CBI).


'Swift Action Taken': ED

The financial probe agency said that they have taken swift action by unearthing myriad web of domestic and international transactions and stashing of assets abroad.

“Investigation has also irrevocably proved that these three accused persons used dummy entities controlled by them for rotation and siphoning off the funds provided by the banks,” the ED said.

The agency has further seized 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 percent of total bank loss of Rs 22,585.83 crore,” it said, adding that the investigation by the ED has proved 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.

The ED has filed charge sheets against the three accused after completion of PMLA investigation.

"Extradition requests have been sent for these persons to the UK and Antigua and Barbuda. The extradition of Mallya has been ordered by the Westminster Magistrates Court and confirmed by the UK High Court. Since Mallya has been denied permission to file appeal in the UK Supreme Court, his extradition to India has become final," the ED said.


It further said that the Westminster Magistrates Court has ordered the extradition of Modi to India.

Modi has been in a London Jail for the last two years and three months on the basis of an extradition request by India.

Modi and Mallya have also been declared Fugitive Economic Offenders by PMLA Court in Mumbai, it said.

Assets Seized, Transferred

The ED also said that recently, the agency has transferred shares attached by it, worth of Rs 6,600 crore, to SBI led consortium as per order of PMLA Special Court, Mumbai.

"Today, DRT on behalf of SBI led consortium, has sold shares of United Breweries Limited for Rs 5,824.50 crore," it said, adding that further realisation of Rs 800 crore by sale of shares is expected by 25 June.

It also said that due to the cooperation and help extended by ED, Public Sector Banks have already recovered Rs 1,357 crore by selling the shares earlier.

“Thus, the banks shall be realising total amount of Rs 9,041.5 crore through sale of a part of assets attached/seized by ED under the provisions of PMLA,” the ED said.

“As of date, out of total attached or 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 9,041.5 crore, representing 40 percent of total loss to the bank have been handed over to the Public Sector banks,” it added.


Nearly $1 Bn Recovered From ‘King of Good Times’

Indian banks received Rs 71.82 billion ($967 million) by selling Vijay Mallya’s stake in United Breweries Ltd.

The bulk of the shareholding in United Breweries worth Rs 58.25 billion were sold on 23 June while Rs 13.57 billion were recovered in 2019. According to the ED, the remaining Rs 8 billion of shares are expected to be sold in the next two days.

Mallya was arrested in London in April 2017 and is currently facing extradition to India. A group of 17 banks have accused him of defaulting on more than Rs 91 billion in debt accumulated by Kingfisher Airlines.

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