ED seizes Rs 18,170 cr assets of Mallya, Nirav Modi, Choksi; transfers Rs 9,041.5 cr to PSBs

Around 38 per cent or Rs 9041.5 crore of the Rs 22,585.83 crore defrauded by millionaires Vijay Mallya, Nirav Modi and Mehul Choksi has been returned to banks via sale of shares seized by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA).

The Debts Recovery Tribunal (DRT), on behalf of an SBI-led consortium that lent money to Mallya, on Wednesday sold shares worth over Rs 5,800 crore of United Breweries Limited (UBL) that were earlier attached by the agency under provisions of the PMLA, , the Enforcement Directorate said on Wednesday.

Of the Rs 22,585.83 crore siphoned off from the public sector banks by the trio in separate cases, the ED has so far attached assets worth Rs 18,170.02 crore or 80.45 per cent of the total scam after "unearthing myriad web of domestic and international transactions and stashing of assets abroad".

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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 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.

According to the ED, it has already transferred shares attached by it worth around Rs 6,600 crore to SBI-led consortium as per order of PMLA Special Court in Mumbai. Of this, the DRT sold shares of United Breweries Limited.

"Further realisation of Rs 800 crore by sale of shares is expected by June...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 a total amount of Rs 9041.5 crore through sale of a part of assets attached/seized by ED under the provisions of PMLA," the statement said.

Mallya, declared as a fugitive economic offender, 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 was 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 Domincan Republic where he is currently in custody.