New Delhi: After the Enforcement Directorate transferred a portion of attached assets in cases of Vijay Mallya, Nirav Modi, and Mehul Choksi to Public Sector Banks (PSBs) and the Central Government, the lawyer of Mehul Choksi has issued a statement on Wednesday and claimed that the ED has indeed attached assets much more than the money due to the banks.”
Advocate Vijay Aggarwal, in the Mehul Choksi case, said, “ED has indeed attached assets much more than the money due to the banks. Further, if one looks at the principal amount and the kind of haircut banks are taking in NCLT (National Company Law Tribunal) or otherwise in OTS, in this case, banks will recover more than a hundred per cent of the principal as well as interest.”
“However, for the people, who have been declared fugitive, I have my doubts as to how will banks get the money as in the Fugitive Economic Offenders Act. There is no provision to give the money to the victims and the money is confiscated by the central government. However in the prevention of money laundering act, there is an amendment in 2019 in the prevention of money laundering restoration of property rules 2016, now bank as a victim can approach the special Judge PMLA and seek the property seized to satisfy their dues,” he added.
The Enforcement Directorate on Wednesday transferred seized assets worth Rs 9,371.17 crore in the cases related to Vijay Mallya, Nirav Modi, and Mehul Choksi, to Public Sector Banks (PSBs) and Central Government.
Assets worth Rs 18,170.02 crore have so far been seized by the ED.
“Enforcement Directorate (ED) not only seized assets worth Rs 18,170.02 crore (80.45% of the total loss to banks) in the case of Vijay Mallya, Nirav Modi, and Mehul Choksi under PMLA but also transferred a part of attached/ seized assets of Rs 9371.17 crore to the PSBs and Central Govt,” ED informed in a tweet.
The ED, in a press release elaborated, “As on date, out of the total seized assets of Rs. 18,170.02 crore, under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), assets worth of Rs 329.67 crore were confiscated and assets worth Rs 9041.5 crore, representing 40 per cent of the total loss to the bank have been handed over to the Public Sector banks.”
Vijay Mallya, Nirav Modi, and Mehul Choksi had allegedly defrauded various PSBs by siphoning off the funds through their companies, resulting in a total loss of Rs. 22,585.83 crore to the banks.
ED’s investigation based on FIR by the Central Bureau of Investigation (CBI) once and for all proved that the three accused used dummy entities controlled by them, for rotation and siphoning off the funds provided by the banks.
The seized assets worth Rs. 18,170.02 crore, includes assets worth Rs. 969 crore located in foreign countries.
Prosecution complaints, along with extradition requests to the United Kingdom (UK), Antigua, and Barbuda, have been filed against all the three accused after the completion of the PMLA investigation, the release informed.