Finance Minister Nirmala Sitharaman informed the Lok Sabha on Tuesday that the Enforcement Directorate (ED) has successfully returned ₹22,280 crore in assets to victims of economic offences. This includes ₹14,000 crore recovered from the sale of fugitive industrialist Vijay Mallya’s confiscated assets, which were returned to banks affected by his financial misdeeds.
Focus on High-Profile Cases:
Apart from Vijay Mallya, the ED has recovered ₹1,053 crore from assets linked to diamond merchant Nirav Modi. Another fugitive diamantaire, Mehul Choksi, who, along with Nirav Modi, is accused of laundering over ₹13,000 crore from Punjab National Bank (PNB), has had his assets attached. The ED and banks have jointly moved a special Mumbai court to auction these assets, valued at ₹2,566 crore, with proceeds to be deposited into fixed deposit accounts for PNB and liquidators.
Legal Framework Under PMLA:
Sitharaman emphasized the effective application of the Prevention of Money Laundering Act (PMLA), particularly Sections 8(7) and 8(8), which enable the return of confiscated assets to their rightful claimants. She stated that this process begins after charges are framed in special courts, ensuring the assets are restored to legitimate owners while penalizing offenders.
Commitment to Pursuing Economic Offenders:
Reiterating the government’s resolve to combat economic crimes, Sitharaman declared, “We will ensure that money owed to banks is recovered and returned.” Highlighting progress, she mentioned other cases, including the National Spot Exchange Ltd (NSEL) scam, from which ₹17.47 crore was restored to banks.
Additional Recoveries:
The ED’s efforts have led to further asset recoveries from:
- SRS Group: ₹20.15 crore
- Rose Valley Group: ₹19.40 crore
- Surya Pharmaceuticals Ltd: ₹185.13 crore
- Nowhera Sheikh and Heera Group: ₹226 crore
- Bhushan Power and Steel Ltd: ₹4,025 crore (via Supreme Court orders)
The recoveries highlight the government’s proactive stance in ensuring justice for victims of financial fraud.
