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The Enforcement Directorate has transferred assets to the tune of Rs 9,371 crore, owned by Vijay Mallya, Mehul Choksi and Nirav Modi, to the public sector banks. The three businessmen, who have all fled the country, are accused of defrauding the banks leading to cumulative losses worth Rs 22,585 crore for the PSB’s. This comes as another victory for the banks after a SBI led consortium of banks was recently authorised to take over and sell shares of more than Rs 6,000 crore owned by fugitive businessman Vijay Mallya
The ED has taken steps to seize assets to the tune of Rs 18,170.02 crore which can cover over 80.45% of the total losses the banks had to bear. The seized assets include assets in foreign countries valued at Rs 969 crore.
According to the investigation conducted by the financial investigation agency ED, the three Indian businessmen siphoned off the money provided by the public sector banks through dummy entities that they themselves controlled. After their respective frauds were unearthed, the trio fled the country with Vijay Mallya and Nirav Modi escaping to London while Mehul Choksi went to the Caribbean nation of Antigua and Barbuda.
The Indian government is working on the extradition process to bring the three fugitive businessmen back to the country. Mallya’s extradition is final after being confirmed by the UK High Court. Meanwhile, Nirav Modi remains in a London jail and his extradition has been ordered by the Westminster Magistrates Court.
Vijay Mallya and Nirav Modi have been declared ‘fugitive economic offenders’ by a PMLA court. Till now the PSBs have been able to recover Rs 1,357 crore through the sale of shares.