India seizes assets of fugitive businessmen involved in bank frauds

Mehul Choksi, Vijay Mallya and Nirav Modi
Clockwise from left: Mehul Choksi, Vijay Mallya and Nirav Modi. The Enforcement Directorate (ED), a law enforcement agency and economic intelligence agency in India has seized assets worth Rs181.7 billion, which is 80 per cent of the total losses incurred by the banks. Image Credit: AFP/ANI

Dubai: The Enforcement Directorate (ED), a law enforcement agency and economic intelligence agency in India has seized assets worth Rs181.7 billion, which is 80 per cent of the total losses incurred by the banks, in cases related to fugitive businessmen Vijay Mallya, Nirav Modi and Mehul Choksi.

About half of the assets have been transferred to the banks and the central government.

The ED also said on Wednesday that not only has the assets been seized, but a significant share, Rs93.7 billion, has been transferred to the public sector banks and the central government.

The ED has transferred shares attached by it (worth Rs66 billion) to the State Bank of India-led consortium as per the orders of the Special Court in Mumbai.

The debts recovery tribunal has sold shares worth over Rs58 billion of United Breweries Limited (UBL) that were earlier attached under the anti-money laundering law as part of an alleged bank fraud probe against fugitive liquor baron Vijay Mallya.

The further realisation of Rs8 billion by sale of shares is expected by June 25, said the probe agency.

Public sector banks have already recovered Rs13.57 billion of the losses by selling the shares earlier. Thus, the banks shall be realising a total amount of Rs79.81 billion by this week through the sale of a part of assets that have been attached or seized by the ED.