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ED transfers assets of Vijay Mallya, Nirav Modi, Mehul Choksi worth ₹8,441.50 cr. to banks

The Enforcement Directorate has transferred assets worth ₹8,441.50 crore to public sector banks that suffered losses to the tune of ₹22,585.83 crore due to frauds committed allegedly by Vijay Mallya, Nirav Modi and Mehul Choksi. All three accused have fled overseas.

A man walks past a mural depicting businessmen Nirav Modi and Vijay Mallya in Kolkata. File photo

The agency said it recently transferred attached shares worth ₹6,600 crore to a State Bank of India-led consortium as per an order of a PMLA (Prevention of Money-Laundering Act) Special Court, Mumbai.

On Wednesday, the Debt Recovery Tribunal, on behalf of the consortium, sold the shares of United Breweries Limited for ₹5,824.50 crore. Further realisation of ₹800 crore by sale of shares is expected by June 25.

Owing to the help extended by the ED, the public sector banks had earlier recovered ₹1,357 crore by selling the shares. “Thus, the banks shall be realising a total amount of ₹9,041.50 crore through sale of a part of the assets attached/seized by the ED...,” said the agency.

As on date, of the total attachment worth ₹18,170.02 crore, assets valued ₹329.67 crore have been confiscated and properties worth ₹9,041.50 crore — amounting to 40% of the total loss to the banks — have been handed over to them.

Based on the cases registered by the CBI, the ED had taken up a money-laundering probe that helped unearth a complex web of domestic and international transactions and stashing of assets abroad by the accused persons and their associates. They had used dummy entities controlled by them for rotation and siphoning of the funds provided by the banks.

As part of the investigation, the ED took steps to attach or seize assets worth ₹18,170.02 crore, which included properties worth ₹969 crore located in foreign countries. “The quantum of the attached and seized assets represents 80.45% of total bank loss of ₹22,585.83 crore,” said the agency.