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From Sale Of Shares, ED Says 40 % Money Lost By Banks Due To Vijay Mallya, Nirav Modi Scams Has Been Realised

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The Enforcement Directorate has said that About 40 per cent of the money lost by banks in the PNB scam and the fraud linked to fugitive businessman Vijay Mallya’s defunct Kingfisher Airlines has been realised by way of sale of shares seized under the Prevention of Money Laundering Act (PMLA).

It said the Debts Recovery Tribunal (DRT), on behalf of an SBI-led consortium that lent money to Mallya, on Wednesday sold shares worth over Rs 5,800 crore of United Breweries Limited (UBL) that were earlier attached by the agency under provisions of the PMLA.

This attachment was earlier done by the ED as part of its criminal probe against 65-year-old Mallya, who is now in the UK.

The ED said the DRT action came after the agency transferred the shares (worth nearly Rs 6,600 crore of UBL) attached by it to the SBI-led consortium on the direction of the special PMLA court in Mumbai.

Mallya and fugitive diamantaires Nirav Modi and Mehul Choksi, who were involved in the PNB scam, “defrauded public sector banks by siphoning off the funds through their companies which resulted in a total loss of Rs 22,585.83 crore to the banks”, it said.

As on date, the agency has attached total assets worth Rs 18,170.02 crore in these two bank fraud cases, it said.

“Assets worth Rs 329.67 crore have been confiscated and assets worth Rs 9,041.5 crore, representing 40 per cent of the total loss to the banks have been handed over to public sector banks,” the ED said in a statement.

The further realisation of Rs 800 crore by sale of shares is expected by June 25, it said.

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