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Restitution of properties/assets

Restitution of properties/assets

 

1. Prevention of Money Laundering Act, 2002 (PMLA) provides that the Special Court trying the offence may restore any property/assets involved in money laundering to a third party claimant with legitimate interest, including banks.

2. Vijay Mallya, Nirav Modi and Mehul Choksi have defrauded Public Sector Banks by siphoning off the funds through their companies which resulted in total loss of Rs. 22,585.83 Crores to the banks. As sequel to FIR by CBI, the Directorate of Enforcement has taken swift action by unearthing myriad web of domestic and international transactions and stashing of assets abroad. Investigation has also irrevocably proved that these three accused persons used dummy entities controlled by them for rotation and siphoning off the funds provided by the banks.

3. As a result of the investigation conducted by ED, assets worth Rs. 19,111.20 crores have been attached under the provisions of PMLA. Out of which, assets worth Rs.15,113.91 crores has been restituted to the Public Sector Banks. Hence, 84.61% of the total defrauded funds in these cases have been attached/seized and 66.91% of total loss to the banks has been handed over to Banks/Confiscated to Government of India. Further, the consortium of brinks led by SBI has realized Rs.7975.27 crores by sale of assets handed over to them by the Directorate of Enforcement.