Finance Minister Nirmala Sitharaman informed the Lok Sabha that the Enforcement Directorate (ED) has restored assets worth Rs 22,280 crore to victims of various scams on Tuesday. This includes over Rs 14,000 crore returned to banks from the sale of fugitive businessman Vijay Mallya’s assets. Additionally, Rs 1,053 crore from diamond merchant Nirav Modi’s assets has been restituted.
Action on Mehul Choksi’s Assets
The ED, in collaboration with several banks, has moved a special court in Mumbai to auction Mehul Choksi’s assets. Choksi, along with Nirav Modi, laundered over Rs 13,000 crore from Punjab National Bank and fled the country.
The special court has allowed the ED to value and auction Choksi’s seized properties, which are worth Rs 2,566 crore. The sale proceeds will be deposited in fixed deposit accounts of PNB and other liquidators.
Asset Restoration Under PMLA
In her response to the supplementary demands for grants, Sitharaman highlighted the ED’s success in restoring assets under the Prevention of Money Laundering Act (PMLA). She explained that once a trial begins and charges are framed by a special court, the assets can be returned to rightful claimants.
Sitharaman also pointed out that ED is effectively using PMLA sections 8(7) and 8(8). These provisions allow the return of assets to innocent parties once it is confirmed that they were acquired through illicit means.