ED transfers Rs. 9000 crore seized from Mallya, Nirav Modi and Choksi
New Delhi: The Enforcement Directorate (ED) has transferred Rs. 9,371.17 crore to the public sector banks and central government which was seized by elusive businessmen Vijay Mallya, Nirav Modi and Mehul Choksi.
ED has seized Rs. 18,170 crore from three businessmen, which was 80% of total losses owed to the banks, in seized assets worth Rs. 969 crore located in foreign countries. Total losses incurred by three businessmen were Rs. 22.585.83 crore to various public sector banks and union government.
Liquor baron and former MP of the Rajya Sabha Vijay Mallya are now staying in London facing fraud and money laundering charges about the Rs 9000 crores borrowed by Kingfisher Airlines (KFA) borrowed from several public sector banks. Eleven banks have lent loans to the Mallya group of companies. State Bank of India (SBI) had estimated a loss of over Rs 6,200 crore due to Mallya's bad loans.
Now ED has transferred to Rs. 6600 crore to the SBI led consortium following order s of PMLA special court in Mumbai. On behalf of request made by SBI-led consortium sold shares of United Breweries Limited for Rs. 5824.50 crore.
The assets attached by the ED under the Prevention of Money Laundering Act (PMLA) In addition to this, ED has also transferred a part of the attached and seized assets of Rs. 9371 crore to PSBs and the central government.
“ED has seized assets worth of Rs. 18,170.02 crore (80.45% of total loss to banks) in case of Vijay Mallya, Nirav Modi and Mehul Choksi under the PMLA but also transferred a part of attached/ seized assets of Rs. 9371.17 Crore to the PSBs and Central Government” ED stated in the tweet.
In its official statement, the ED stated that, "Vijay Mallya, Nirav Modi, and Mehul Choksi have defrauded Public Sector Banks and incurred total loss of Rs. 22,585.83 Crore to the Nationalized banks.
Nirav Modi who was arrested on March 19, 2019, for accused in money laundering cases. Mehul Choksi and his nephew Nirav Modi accused of duping PNB and siphoning off the money using letters of undertaking.
The ED stated that in Vijay Mallya case, it has already transferred shares attached worth of Rs. 6,600 crore to SBI led consortium as per the directions of PMLA Special Court, Mumbai in first week of June.