Assets worth Rs 9, 041.5 crore, representing 40 per cent of the total loss to the banks due to the PNB credit fraud case involving diamantaire Mehul Choksi and his nephew Nirav Modi besides liquor baron Vijay Mallya have been handed over to the public sector banks. These assets were seized by the Enforcement Directorate (ED) as part of the money laundering probe against them.
The alleged siphoning off funds by the trio has led to a combined loss to the public sector banks to the tune of Rs 22,585.83 crore.
“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 agency said in a statement.
The ED attached/seized assets worth Rs 18,170.02 crore which included assets worth Rs 969 crore located in foreign countries.
“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 worthRs 9, 041.5 crore, representing 40 per cent of total loss to the bank have been handed over to the public sector banks,” it said.
The quantum of the attached and seized assets represents 80.45 per cent of the total bank loss pegged at Rs 22,585.83 crore.
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 accusedand these entities were proxy of these accused to hold these assets, it said.
Extradition requests have been sent against these persons to the UK and Antigua and Barbuda. The extradition of Vijay Mallya has been ordered by the Westminster Magistrates Court and confirmed by the UK High Court. Since Vijay Mallya has been denied permission to file appeal in the UK Supreme Court, his extradition to India has become final.
The Westminster Magistrates Court has also ordered the extradition of Nirav Modi to India. Nirav Modi has been in London jail for the last two years and three months on the basis of an extradition request by India. On Wednesday, the UK High Court rejected Modi’s appeal against his extradition approved by the UK Home Secretary Priti Patel. However, he will get an opportunity to appeal for an oral hearing within five days.
Nirav Modi and Vijay Mallya have also been declared Fugitive Economic Offenders by the PMLA Court in Mumbai.
The Debt Recovery Tribunal (DRT) on Wednesday sold shares of United Breweries Ltd. worth Rs 5,824.50 crore that were earlier attached by the Enforcement Directorate (ED) under money laundering charges against fugitive liquor baron Vijay Mallya’s alleged involvement in bank fraud, it said.
Further realisation of Rs 800 crore by sale of shares is expected by June 25.Recently, it said, the agency had transferred shares attached by it (worth about Rs 6,600 crore) to the SBI-led consortium following an order from the PMLA Special Court, Mumbai. “Today, DRT on behalf of SBI-led consortium, has sold shares of United Breweries Limited for Rs 5824.50 crore,” it said.