Rs 15,000 cr of Vijay Mallya, Nirav Modi's assets returned to banks: Govt
Vijay Mallya, key figure in a bank loan default case, fled India in 2016 | Nirav Modi is wanted for defrauding Punjab National Bank
PTC Web Desk: Finance Minister Nirmala Sitharaman informed Parliament on Tuesday that properties valued at Rs 14,131 crore, once owned by fugitive businessman Vijay Mallya, have been seized and handed over to public and private sector banks to recover part of his substantial debts.
Nirmala Sitharaman said the Enforcement Directorate (ED) had restored a total of Rs 22,280 crore in assets from poeple like Mallya, Mehul Choksi, and Nirav Modi to help repay debts owed to banks.
The total recovered amount includes Rs 1,052 crore from Nirav Modi and Rs 2,565 crore from Mehul Choksi. Additionally, Rs 17.5 crore linked to the National Spot Exchange Ltd (NSEL) case has been returned. Sitharaman asserted, "In cases of money laundering, the ED has successfully restored properties worth Rs 22,280 crore. We have left no one behind. Even if they fled the country, we have pursued them."
The Finance Minister's comments come in response to questions raised about the ED's low conviction rate, which has been a point of contention. Congress leader Randeep Surjewala recently criticised the government's handling of economic crimes, pointing to a conviction rate of just 4.6% in cases filed between 2019 and 2023. In that period, over 900 cases were filed under the Prevention of Money Laundering Act (PMLA), but only 42 resulted in convictions.
Surjewala accused the ruling Bharatiya Janata Party (BJP) of using federal agencies like the ED to target opposition leaders with baseless charges. The Supreme Court had also raised concerns in August about the quality of prosecution, urging the ED to improve its performance.
Regarding efforts to track black money stashed abroad, Sitharaman stated that the Black Money Act (2015) has shown positive results. The number of taxpayers disclosing foreign assets has surged, with 2 lakh taxpayers reporting such assets in 2024-25, up from just over 60,000 in 2021-22. As of June 2024, nearly 700 cases have been filed, with 163 prosecutions underway to recover over Rs 17,000 crore, including high-profile investigations stemming from the Panama, Paradise, and Pandora Papers leaks.
Sitharaman's remarks were also linked to a recent meeting between Prime Minister Narendra Modi and British Prime Minister Keir Starmer at the G20 Summit in Brazil, where Modi urged Starmer to expedite the extradition of Mallya and Modi. India is also seeking the extradition of Sanjay Bhandari, who is involved in illegal arms deals.
Vijay Mallya, the key figure in a bank loan default case, fled India in 2016. Nirav Modi, another prominent fugitive, is wanted for defrauding Punjab National Bank.