Enforcement Directorate attached assets more than money due to banks: Mehul Choksi's lawyer

The Enforcement Directorate has attached assets much more than the money due to the banks, claimed Advocate Vijay Aggarwal, the lawyer of Mehul Choksi. The statement comes after ED has transferred attached assets worth Rs 9,371 crore to public sector banks and Central Government on account of frauds allegedly committed by Vijay Mallya, Mehul Choksi and Nirav Modi.

Mehul Choksi's lawyer said, as quoted by ANI, "ED has indeed attached assets much more than the money due to the banks. Further, if one looks at the principal amount and the kind of haircut banks are taking in NCLT (National Company Law Tribunal) or otherwise in OTS, in this case, banks will recover more than a hundred per cent of the principal as well as interest."

"However, for the people, who have been declared fugitive, I have my doubts as to how will banks get the money as in the Fugitive Economic Offenders Act. There is no provision to give the money to the victims and the money is confiscated by the central government. However in the prevention of money laundering act, there is an amendment in 2019 in the prevention of money laundering restoration of property rules 2016, now bank as a victim can approach the special Judge PMLA and seek the property seized to satisfy their dues," he added.


In a press statement issued earlier, ED said that Mallya, Modi and Choksi have defrauded Public Sector Banks by siphoning off the funds through their companies which resulted in total loss of Rs 22,585.83 crore to the banks.

Assets worth Rs 18,170.02 crore have so far been seized by the ED.

ED stated in a press release, "As on date, out of the total seized assets of Rs. 18,170.02 crore, under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), assets worth of Rs 329.67 crore were confiscated and assets worth Rs 9041.5 crore, representing 40 per cent of the total loss to the bank have been handed over to the Public Sector banks."

With Inputs from ANI