On Tuesday, Finance Minister Nirmala Sitharaman informed the Lok Sabha about the Enforcement Directorate’s (ED) substantial progress in recovering assets worth Rs 22,280 crore from various economic offenders. This amount includes over Rs 14,000 crore that was returned to banks from the sale of assets of fugitive businessman Vijay Mallya and Rs 1,053 crore recovered from diamond merchant Nirav Modi.
Addressing the Lok Sabha, Sitharaman stressed the government’s unwavering commitment to pursue those involved in economic offences. She reassured the House that the recovered funds would be returned to their rightful owners, primarily public sector banks. “We will ensure that money that has to go to the banks goes back,” she said, underscoring the government’s determination to act against financial wrongdoers.
In a significant development, the ED, in collaboration with the banks, has moved a special court in Mumbai for the sale of assets belonging to Mehul Choksi, a diamantaire who, along with Nirav Modi, was involved in defrauding Punjab National Bank of over Rs 13,000 crore. The special court has approved the ED’s plan to carry out a valuation and auction of Choksi’s attached and seized properties worth Rs 2,566 crore, with the sale proceeds to be deposited into the fixed deposit accounts of Punjab National Bank and other liquidators.
Sitharaman further explained that under the provisions of the Prevention of Money Laundering Act (PMLA), the ED has been successful in restoring assets to legitimate claimants once the trial begins and charges are framed. She highlighted that sections 8(7) and 8(8) of PMLA enable the restoration of properties to innocent parties, even if the assets were initially acquired through illicit means.
The Finance Minister provided a breakdown of significant asset restorations carried out by the ED, including:
Vijay Mallya: Rs 14,131.6 crore returned to public sector banks.
Nirav Modi: Rs 1,052.58 crore returned to public and private sector banks.
National Spot Exchange Ltd (NSEL) Scam: Rs 17.47 crore returned to banks.
SRS Group: Rs 20.15 crore restored.
Rose Valley Group: Rs 19.40 crore restored.
Surya Pharmaceuticals Ltd: Rs 185.13 crore recovered.
Heera Group (Nowhera Sheikh and Others): Rs 226 crore restored.
Naidu Amrutesh Reddy and Others: Rs 12.73 crore returned.
Mehul Choksi and Others: Rs 2,565.90 crore restored.
Nafisa Overseas and Others: Rs 25.38 crore returned.
Bhushan Power and Steel Ltd (BPSL): The Supreme Court ordered the restitution of Rs 4,025 crore to JSW, as per its December order.
Sitharaman concluded by reiterating the government’s robust legal approach to ensure the return of illicitly obtained wealth to the rightful owners, signaling a strong stance against financial crimes in the country.
