Banks consortium gets over Rs 792 crore in Mallya loan default case: ED

Mallya, who fled to the UK, is being probed by the ED and the CBI in connection with an alleged Rs 9,000 crore bank fraud

A consortium led by State Bank of India (SBI) on Friday sold shares worth Rs 792.11 crore owned by Vijay Mallya, which were seized by the Enforcement Directorate after the fugitive businessman defaulted on repaying loans.

Earlier, the ED said on Friday, the SBI-led consortium had realised Rs 7,181.50 crore by liquidating the assets handed over to it in connection with the Mallya case.

Altogether, the ED said the banks and the government exchequer have realised 58% out of the total fraud perpetrated in two of the country's biggest criminal bank loan fraud cases -- the Mallya case and another involving Nirav Modi and Mehul Choksi -- to date.

Of the Rs 22,585.83 crore defrauded by millionaires Mallya, Nirav and Choksi in two separate cases, the ED said, it has so far attached assets of Rs 18,217.27 crore under the provision of the Prevention of Money Laundering Act.

To date, the ED has transferred assets worth Rs 12,762.25 Crore to the Public Sector Banks and confiscated assets of Rs 329.67 crore.

In the Nirav case, the Fugitive Economic Offense Court has allowed banks to take over assets worth Rs 1,060 crore and Rs 329.67 crore has been confiscated by the ED under provisions of FEOA. On July 1, Nirav's sister Purvi Modi transferred Rs 17.25 crore from proceeds of crime from her foreign bank account to the ED.

In both the cases, the ED had claimed, the investigation has proved that a substantial part of these assets was held in the names of dummy entities, trusts third persons, relatives of the accused and these entities were proxies to hold these assets, the ED said in a statement. The seized assets also include those worth Rs 969 crore located in foreign countries.

Mallya has been declared a fugitive economic offender and is wanted in connection with the loan fraud involving Kingfisher Airlines. The extradition of Vijay Mallya has been ordered by the Westminster Magistrates Court and confirmed by the UK High Court.

The Westminster Magistrates Court has also ordered the extradition of Nirav, who is also declared a fugitive economic offender, to India. He has been in London Jail for the last two years and three months on the basis of an extradition request by India.

India is also trying to get Choksi, who has taken the citizenship of Antigua and Barbuda, deported from the Dominican Republic where he is currently in custody.

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