Vijay Mallya's Assets Sold, ₹14,000 Crore Deposited to Banks

The Indian government has recovered ₹22,000 crore from financial fugitives this year, Finance Minister Nirmala Sitharaman revealed in the Lok Sabha. Assets belonging to fugitive businessman Vijay Mallya were auctioned, raising ₹14,000 crore, which was deposited into various banks.

Additionally, assets worth ₹1,000 crore of diamond trader and bank loan defaulter Nirav Modi were sold. The Enforcement Directorate (ED) and banks jointly approached a special court in Mumbai to facilitate the sale of these assets. The special court authorized the auction, enabling recovery from loan defaulters.

Further, the ED attached assets worth ₹2,566 crore belonging to another diamond trader, Mehul Choksi. Sitharaman stated that Choksi defaulted on loans exceeding ₹13,000 crore borrowed from Punjab National Bank. The Mumbai special court permitted the auction of his attached properties, directing proceeds to Punjab National Bank and other lenders.

The Finance Minister emphasized that recoveries are being made under the Prevention of Money Laundering Act (PMLA) to compensate banks for outstanding loans from financial defaulters.