The Enforcement Directorate (ED) on Wednesday said it has handed over assets worth Rs 9,371 crore belonging to fugitive businessmen Vijay Mallya, Nirav Modi, Mehul Choksi to state-run banks to realise the losses on account of the fraud committed against them.
The ED in a statement said that Mallya, Nirav Modi and Choksi have defrauded public sector banks by siphoning off the funds through their companies which resulted in a total loss of Rs 22,585.83 crore to the banks.
The ED has booked the three on the basis of the FIR filed by the Central Bureau of Investigation (CBI).
The financial probe agency said that the ED has taken swift action by unearthing myriad web of domestic and international transactions and stashing of assets abroad.
“Investigation has also irrevocably proved that these three accused persons used dummy entities controlled by them for rotation and siphoning off the funds provided by the banks,” the ED said.
It further said that the ED has attached or seized 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 percent of total bank loss of Rs 22,585.83 crore,” it said, adding that the investigation by the ED has proved that a substantial part of these assets was 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.
The ED has filed charge sheets against all the three accused after the completion of the PMLA investigation.
“Extradition requests have been sent for these persons to the UK and Antigua and Barbuda. The extradition of Mallya has been ordered by the Westminster Magistrates Court and confirmed by the UK High Court. Since Mallya has been denied permission to file an appeal in the UK Supreme Court, his extradition to India has become final,” the ED said.
It further said that the Westminster Magistrates Court has 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.
Nirav Modi and Mallya have also been declared Fugitive Economic Offenders by PMLA Court in Mumbai, it said.
The ED also said that recently, the agency has transferred shares attached by it, worth Rs 6,600 crore, to SBI led consortium as per the order of PMLA Special Court, Mumbai.
“Today, DRT on behalf of SBI led consortium, has sold shares of United Breweries Limited for Rs 5,824.50 crore,” it said, adding that further realisation of Rs 800 crore by sale of shares is expected by June 25.
It also said that 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 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.
“As on date, out of total attached or seized assets of Rs 18,170.02 crore under provisions of PMLA, assets worth of Rs 329.67 crore has been confiscated and assets worth Rs 9,041.5 crore, representing 40 percent of a total loss to the bank have been handed over to the Public Sector banks,” it added.