SBI consortium gets over Rs 792 crore in Mallya loan case
The SBI consortium, which lent fugitive businessman Vijay Mallya on Friday, received Rs 792.11 million in its accounts after selling off some previously seized shares under the Money Laundering Act, the petitioner (ED) stated that two of the largest bank loan theft cases in the country to date, account for 58 per cent of all fraud in banks and the treasury, with the other case accounting for more than Rs 13,500 million apart from the Mallya case.
Alleged bank loan fraud in the Brady House (Mumbai) branch of the National Bank of Punjab, allegedly orchestrated by diamond dealer Nirav Modi and his uncle Mehul Choksi.
INR 792.11 crore was realised by an SBI-led consortium through sales of Kingfisher Airlines or the Vijay Mallya case. These measures were delivered to the consortium by the Directorate for Execution, ”the Central Investigative Authority said in a statement published here.
These measures were previously attached by the ED as part of its criminal investigation under the Prevention of Money Laundering Act (PMLA).
Also last month, the banking consortium received more than 7,181 billion rupees in the Mallya case after a similar sale.
Mallya, who has fled to the UK, is under investigation by the ED and the CBI in connection with an alleged Rs 9,000 billion bank fraud related to the operation of their now-defunct Kingfisher Airlines.
A 65-year old liquid baron lost his case against extradition to India and since he was denied permission to appeal to the UK Supreme Court, his extradition to India is final, the ED had previously said.
Bank funds in excess of Rs 22,000 crore (Rs 22,585.83 crore in defined numbers) will be declared as “defrauded” in these two cases.
“So far, assets equivalent to 58 per cent of a total bank loss have been turned over to banks or confiscated to be deposited in Indian government accounts.”
It is worth noting here that ED has attached/confiscated INR 18,217.27 crore of assets (in these two cases), “the ED said.
The three defendants, Mallya, Nirav Modi and Choksi, fled overseas at different time periods than the In response to these developments, Union Treasury Secretary Nirmala Sitharaman said in a tweet last month: “Refugees and white-collar criminals are being actively pursued; you repossessed property and charges collected.