ED seizes Rs 64,920 cr in bank fraud cases: FM

The Enforcement Directorate has investigated 1,105 bank fraud cases under the PMLA and has attached proceeds of crime worth Rs 64,920 crore, Finance Minister Nirmala Sitharaman said on Monday.

In the Lok Sabha, Sitharaman also said the Fugitive Economic Offenders Act (FEOA), 2018, was enacted to deter economic offenders from evading Indian law by staying abroad and was applicable to offences involving Rs 100 crore or more.

The actions taken under this Act include confiscation of properties, proceeds of crime, benami properties, lookout notices through the Bureau of Immigration, prohibition on raising capital and acquiring shares or voting rights.

Sitharaman, who is also in charge of the corporate affairs ministry, made the remarks while replying to a discussion on the bill to amend the Insolvency and Bankruptcy Code (IBC). During the discussion, some members had mentioned fugitive economic offenders.

“ED investigated 1,105 bank fraud cases under PMLA with attachment of proceeds of crime amounting to Rs 64,920 crore. 150 accused have been arrested and 277 prosecution complaints (were) filed... eight accused have been declared Fugitive Economic Offenders under Fugitive Economic Offenders Act (FEOA),” Sitharaman said.

According to her, assets worth Rs 15,186 crore have been confiscated, of which Rs 15,183 crore has been restituted to public sector banks.

Also, three accused have been convicted under the PMLA (Prevention of Money Laundering Act).

Regarding the fraud at PMC Bank, the minister said the bank recovered Rs 104 crore with ED’s support and assets worth Rs 725 crore were confiscated under FEOA provisions.

Meanwhile, the bill to amend the IBC was later passed by the Lower House.