ED transfers connected resources fee Rs 8,441 crore of Mallya, Nirav Modi to duped PSBs | India Industry

In a wide switch by the Enforcement Directorate (ED) pertaining to the bank fraud case, the central agency has transferred connected resources fee over Rs 8,441 crore to Public Sector Banks (PSBs) who suffered losses due to the bank fraud committed by fugitives Vijay Mallya, Nirav Modi and Mehul Choksi. Notably, the accused three alleged defrauded PSBs by siphoning funds to their companions which resulted in a total loss of Rs 22,585 crores to the PSBs. As of now, about RS 23,000 crore has been refunded to the Public Sector Banks by selling the properties of the accused whose resources had been connected by the ED. 

It is pertinent to mention that the ED has already connected the resources fee thousands of crores of fugitives– Vijay, Mallya, Nirav Modi and Mehul Choksi in reference to the bank fraud case. Earlier in July, the central agency connected the movable properties of fugitive Nirav Modi fee Rs 253.62 crore. The ED had connected gold, jewellery and bank balance as proceeds of crime in the case of Nirav Modi and a community of companies in Hong Kong making the total connected and/or seized resources tally in the case stand at Rs. 2650.07 Cr in July.

Along with to this, the central agency seized about Rs 18,000 crores in money laundering cases touching on to Vijay Mallya, Mehul Choksi and Nirav Modi, the Centre advised the Supreme Court docket in February. Notably, the three fugitives face charges of fraud and money laundering pertaining to the bank fraud case. 

Charges against financial offenders

Liquor baron and passe MP of the Rajya Sabha Vijay Mallya, at the moment in London faces charges of fraud and money laundering pertaining to the Rs 9000 crores borrowed by Kingfisher Airways (KFA) from lots of Indian banks. A consortium of 11 banks that gave Mallya loans, led by Impart Financial institution of India (SBI) had estimated a loss of over Rs 6,200 crore because of Mallya’s unfriendly loans and sought restoration of his properties seized by the ED. 

Nirav Modi who became once arrested on March 19, 2019, has been accused to be the “essential beneficiary” of the faux issuance of letters of endeavor (LoUs) as section of a conspiracy to defraud PNB to the extent of Rs 13,578 crore. Proprietor of Gitanjali jewellers, Mehul Choksi with his nephew Nirav Modi is accused of duping the Punjab National Financial institution and siphoning off the money the employ of letters of endeavor.