PSU banks recover another Rs 792 crore from Vijay Mallya

Public Sector Banks defrauded by ‘fugitive’ businessmen Vijay Mallya, Nirav Modi and Mehul Choksi continue to recover a part of the money they lost in those frauds.

SBI-led consortium has realised Rs 792.11 crore by selling shares in Vijay Mallya’s Kingfisher Airlines. These shares were handed over by the Enforcement Directorate (ED) to the consortium.

On 23 June this year, the SBI-led consortium had realized Rs 5,824 crore by selling shares of Vijay Mallya in United Breweries to Heineken NV.

Earlier, the SBI-led consortium had realized Rs. 7182 crore by liquidating assets handed over to it by ED. The enforcement agency has also handed over assets worth Rs. 3,729 crore to the SBI-led consortium including shares of Rs. 3645 crore, Demand Draft of Rs. 54.33 Crore and immovable properties worth Rs. 29.57 Crore.

The banks also took control of assets worth Rs 1,060 crore worth asset in the PNB fraud case involving Nirav Modi. ED has also confiscated another Rs. 330 Crore under provisions of Fugitive Economic Offenders Act.

On 1 July 2021, Purvi Modi, sister of Nirav Modi, transferred Rs 17.25 crore from her foreign bank account to ED.

According to Enforcement Directorate, Vijay Mallya, Nirav Modi and Mehul Choksi have defrauded public  sector  banks  by siphoning  off  the  funds  through  their  companies  resulting in  total  loss  of  Rs 22,586 crore to the banks.

Till date ED has transferred assets worth Rs 12,762 crore to the Public Sector Banks and confiscated assets of Rs. 330 Crore. The ED had also recovered Rs. 17.25 Crore from Purvi Modi. As on date, assets worth 58% of total loss to the banks have either been handed over to banks or confiscated by ED. The enforcement agency has so far attached/seized assets of Rs 18,217 crore under the provision of PMLA.

Also read: ED transfers Rs 8442 crore attached assets of Mallya, Choksi and Nirav Modi to PSU banks