SBI succeeds in recovering additional Rs. 792.11 crore from Mallya, Modi and Choksi

The Enforcement Directorate (ED) informed that a consortium led by the State Bank of India (SBI) has recovered an additional Rs. 792.11 crore by the sale of shares belonging to the fugitive businessmen Vijay Mallya, Nirav Modi and Mehul Choksi. ED's investigation based on a First Information Report (FIR) by the Central Bureau of Investigation (CBI) once and for all proved that the three accused used dummy entities controlled by them, for rotation and siphoning off the funds provided by the banks, it added. Complaints to prosecute all the three accused along with extradition requests to the United Kingdom (UK), Antigua and Barbuda have been filed after the completion of the Prevention of Money Laundering investigation. 

Details on the recovery done by SBI-led consortium 

According to an official statement, the total recovery from the sale of assets of Mallya, Modi and Choksi stood at Rs. 13,109 crore. The realised was handed over to the consortium of banks by the ED. Earlier, the SBI-led consortium had received Rs. 7181.50 crore by liquidating assets handed over to SBI led consortium by ED.

Vijay Mallya, the owner of now-defunct Kingfisher Airlines, owes more than Rs. 9000 crore to a consortium of banks in principal and interest. While diamantaires Nirav Modi and Mehul Choksi, who are the main accused in the Punjab National Bank (PNB) loan fraud case, have caused losses worth Rs. 13,000 crore to the bank. 

Mehul Choksi distances himself from scamster nephew, Modi

Fugitive Diamantaire Mehul Choksi distanced himself categorically from his nephew and PNB scam accused Nirav Modi. Shedding light at the closure of his company, Geetanjali Group, Choksi claimed that there were no criminal cases pending against his reputed firm. Citing that he had announced that his company had no ties with Modi, he lamented the seizure of his properties and his computer by the Indian agencies in connection to the PNB scam. Choksi is currently in Antigua and Barbuda after he received bail from the Dominican High Court.

In addition, Rs.1060 crore worth assets have been allowed to the banks by Fugitive Economic Offense Court in the PNB/ Nirav Modi case and Rs. 329.67 crore have been confiscated by ED under provisions of the Fugitive Economic Offender Act. On July 1, 2021, Purvi Modi, who is the sister of Nirav Modi, has transferred Rs. 17.25 crore from proceeds of crime from her foreign bank account to ED. A few days back, ED had further handed over worth Rs. 3728.64 crore to the SBI led consortium including shares of Rs. 3644.74 crore, demand draft of Rs. 54.33 crore and immovable properties worth Rs. 29.57 crore.

Mallya, Modi, and Choksi had allegedly defrauded various Public Sector Banks (PSBs) by siphoning off the funds through their companies, resulting in a total loss of Rs. 22,585.83 crore to the bank, as per the release. The seized assets worth Rs. 18,170.02 crore included assets worth Rs. 969 crore located in foreign countries.