Finally - public banks recover Rs.9,371 cr in Nirav Modi, Mallya cases

The story: Since 2010, a series of scams, frauds and business failures had robbed the Indian public sector banks of their rightful dues. Now, after a

Finally - public banks recover Rs.9,371 cr in Nirav Modi, Mallya cases

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• The story: Since 2010, a series of scams, frauds and business failures had robbed the Indian public sector banks of their rightful dues. Now, after a long time, the Enforcement Directorate (ED) has transferred a portion of the assets valued at Rs.8,441 crore it had seized in connection with cases related to the three fugitive economic offenders — Vijay Mallya, Nirav Modi, and Mehul Choksi — to state-run banks.
• Details: With this, the total transfer of the attached assets stands at Rs.9,371 crore, or 40 per cent of the banks’ losses. As per the ED, the State Bank of India (SBI)-led consortium recovered Rs.5,824 crore in the Mallya case by selling some United Breweries (UB) shares through the Dispute Resolution Tribunal (DRT) as directed by the Prevention of Money Laundering Act (PMLA) court.

1. In the Mallya case, the ED recently transferred Rs 6,600 crore worth of assets, while in the Nirav matter, it transferred Rs 1,060 crore to Punjab National Bank.
2. The SBI consortium is also in the process of recovering Rs 800 crore by liquidating some more UB shares, taking the total recovery to Rs 7,981 crore. This includes the earlier recovered amount of Rs 1,357 crore by banks in the case.
3. The banks will be realising a total amount of Rs 7,981.5 crore this week through a sale of a part of the assets attached/seized by the ED under the provisions of PMLA.

• Attached assets: The three offenders have defrauded the public sector banks (PSBs) of Rs 22,586 crore, of which 80 per cent (or Rs 18,170 crore) has been attached/seized by the ED. These include the recent attachment of assets worth Rs 329 crore, the agency further said. The agency was in the process of attaching further assets worth Rs 4,000 crore to cover the total amount defrauded. This may include foreign assets as well. Finance Minister Nirmala Sitharaman said that fugitives and economic offenders will be actively pursued; their properties attached and dues recovered.
• How it was found: The ED claims it unearthed the money trail by exposing a web of domestic and international transactions and unearthing assets stashed abroad. The investigation revealed that the three accused used dummy entities controlled by them for rotation and siphoning off the funds provided by the banks. The extradition requests were sent to countries where the three accused are holed up. Mallya and Nirav live in London, while Choksi fled to Antigua.
• Welcome to India: Mallya has been denied permission to file an appeal in the UK Supreme Court, which has made his extradition to India almost final. Nirav’s extradition to India is in its final leg. Choksi has been contesting a legal battle in Antigua against his extradition process.

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