The Directorate of Enforcement has transferred seized assets worth ₹9371.17 crore to public sector banks that suffered losses due to financial frauds committed by fugitive businessmen Vijay Mallya, Mehul Choksi and Nirav Modi.
The assets were seized under Prevention of Money Laundering Act.
“Vijay Mallya, Nirav Modi and Mehul Choksi have defrauded PSBs by siphoning off the funds through their companies which resulted in a total loss of Rs 22,585.83 crore to the banks,” ED said during the press release on June 23.
“As a sequel to FIR by CBI, the ED has unearthed a myriad web of domestic and international transactions and stashing of assets abroad. The 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,” the ED release said.
It further said that the ED has attached or seized assets worth Rs 18,170.02 crore which included assets worth of Rs 969 crore located in foreign countries.
“The quantum of the attached and seized assets represents 80.45 per cent of total bank loss of Rs 22,585.83 crore,” it said.
“The investigation by the ED has proved that substantial part of these assets were held in the names of dummy entities/trusts/third persons/ relatives of these accused and these entities were proxy of these accused to hold these assets,” ED added.
The ED has filed charge sheets against all the three accused after completion of PMLA investigation.