23 Jun 2021: Banks given Rs. 9,300cr seized from Mallya, Modi, Choksi: ED
The Enforcement Directorate on Wednesday said that it had transferred over Rs. 9,300 crore to public sector banks (PSBs) and the central government after attaching or seizing the assets of fugitive billionaires Mehul Choksi, Nirav Modi, and Vijay Mallya. The ED has attached seized assets worth over Rs. 18,000 crore so far, which accounts for 80.45% of the total losses incurred by the banks.
Statement: Assets worth Rs. 969cr seized from foreign countries
The ED said in a statement on Wednesday, “The ED has also taken immediate steps to attach/seize 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,” the probing agency added.
Fact: ‘Assets held in names of dummy entities, trusts, third persons’
The ED further said, “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.”
Statement: United Breweries shares worth Rs. 5,800 crore sold by DBT
The ED transferred shares attached by it (worth Rs. 6,600 crore) to the State Bank of India (SBI)-led consortium, said the probing agency. The Debt Recovery Tribunal sold the shares of Vijay Mallya‘s United Breweries Limited for Rs. 5,824.50 crore on Wednesday, it said, adding that the sale of shares worth Rs. 800 crore is expected to be realized by June 25.
Fact: Banks recovered Rs. 1,300cr by selling shares earlier
PSBs have recovered Rs. 1,357 crore by selling the shares earlier. “Thus, the banks shall be realizing the 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.
Case: Extradition requests sent for accused: ED
The ED noted that extradition requests have been sent for these persons to the United Kingdom and Antigua and Barbuda. The Westminster Magistrates’ Court ordered Mallya’s extradition, which was later confirmed by the UK High Court. Meanwhile, Modi has been languishing in London Jail for over two years on the basis of an extradition request by India.
Fact: Investigations proved accused used dummy entities to rotate, siphon funds
The ED said it took swift action “by unearthing myriad web of domestic and international transactions and stashing of assets abroad.” Investigations “irrevocably proved” that all three accused used dummy entities controlled by them for rotation and siphoning off the funds provided by the banks.
Fraud: 3 accused defrauded banks of Rs. 22,500 crore
The three accused have defrauded PSBs by siphoning off funds, resulting in a loss of Rs. 22,585.83 crore to the banks, the ED said. Mallya allegedly defrauded a consortium of banks of over Rs. 9,000. The scam involved his now-defunct Kingfisher Airlines. Meanwhile, both Nirav Modi and Choksi (Modi’s uncle) are wanted in the Rs. 14,000 crore Punjab National Bank (PNB) scam.
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