During a debate in the Lok Sabha on the first batch of Supplementary Demands for Grants, Finance Minister Nirmala Sitharaman highlighted the work done by the Enforcement Directorate (ED) in recovering illicit wealth and returning it to public sector banks and defrauded investors.
NEW DELHI: The Enforcement Directorate (ED) handed over properties worth Rs 22,280 crore, which were attached under the Prevention of Money Laundering Act (PMLA), to the rightful claimants or victims, as reported by the finance ministry in parliament.
During a debate in the Lok Sabha on the first batch of Supplementary Demands for Grants, Finance Minister Nirmala Sitharaman highlighted the work done by the Enforcement Directorate (ED) in recovering illicit wealth and returning it to public sector banks and defrauded investors.
She noted that, in major cases, the ED had recovered assets worth Rs 14,131.6 crore from fugitive businessman Vijay Mallya, which were subsequently restored to public sector banks. Similarly, assets worth Rs 1,052.58 crore from the Nirav Modi case were returned to both public and private banks. The ED has also attached assets worth Rs 2,565.90 crore in the Mehul Choksi case, which are set to be auctioned.
Additionally, the ED recovered Rs 17.47 crore from the National Spot Exchange Ltd (NSEL) scam, which were returned to the defrauded investors.
Sitharaman emphasized that under the Prevention of Money Laundering Act (PMLA), the ED has successfully recovered assets worth at least Rs 22,280 crore from major cases. She assured that no one, even those who fled the country, had been left out, and the ED had ensured these assets were returned to the banks.
The Finance Minister reaffirmed the government’s strong stance against economic offenses, stressing that the fight would continue with determination. She assured the public that stolen assets would be recovered and returned to their rightful owners, including financial institutions.
Turning to foreign black money, Sitharaman noted the success of the Black Money Act, enacted in 2015, in deterring illicit wealth. The number of taxpayers declaring foreign assets has risen sharply, from 60,467 in 2021-22 to over 2 lakh in 2024-25.
As of June 2024, the government has raised demands totaling over Rs 17,520 crore in 697 cases under the Black Money Act and initiated 163 prosecutions. The government is also investigating high-profile global leaks such as the Panama Papers, Pandora Papers, HSBC, and ICIJ leaks, with 120 cases under scrutiny.
A Multi-Agency Group (MAG) has been established to coordinate these investigations, resulting in the detection of Rs 33,393 crore in undisclosed income from 582 cases, further demonstrating the government’s commitment to uncovering illicit wealth.
Among the returned assets, Rs 14,132 crore was given back to banks in the Vijay Mallya bank fraud case, and Rs 1,053 crore in the Nirav Modi case. Recently, assets worth Rs 4,025 crore from the Bhushan Power and Steel case were handed over to JSW, which acquired the company through the insolvency process in 2019.
Additionally, the ED has initiated the restitution of Rs 2,566 crore of assets linked to fugitive businessman Mehul Choksi, which were seized in the PNB bank fraud case. The assets are now being transferred to the liquidator of Gitanjali Gems, Choksi’s company.
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Under PMLA, assets can be returned to bona fide claimants once a trial begins, particularly after charges are framed by the Special Court (PMLA).
“The ED has made significant strides in restoring assets to their legitimate owners. This underscores the effective implementation of sections 8(7) and 8(8) of the PMLA, which allow for the return of assets to rightful owners once it is confirmed they were acquired through illicit means but rightfully belong to innocent parties,”
the finance minister stated in parliament.
During a debate in the Lok Sabha on the first batch of Supplementary Demands for Grants, Finance Minister Nirmala Sitharaman highlighted the significant work done by the Enforcement Directorate (ED) in recovering illicit wealth and returning it to public sector banks and defrauded investors.
She noted that, in major cases, the ED had recovered assets worth Rs 14,131.6 crore from fugitive businessman Vijay Mallya, which were subsequently restored to public sector banks. Similarly, assets worth Rs 1,052.58 crore from the Nirav Modi case were returned to both public and private banks. The ED has also attached assets worth Rs 2,565.90 crore in the Mehul Choksi case, which are set to be auctioned.
Additionally, the ED recovered Rs 17.47 crore from the National Spot Exchange Ltd (NSEL) scam, which were returned to the defrauded investors.
Sitharaman emphasized that under the Prevention of Money Laundering Act (PMLA), the ED has successfully recovered assets worth at least Rs 22,280 crore from major cases. She assured that no one, even those who fled the country, had been left out, and the ED had ensured these assets were returned to the banks.
The Finance Minister reaffirmed the government’s strong stance against economic offenses, stressing that the fight would continue with determination. She assured the public that stolen assets would be recovered and returned to their rightful owners, including financial institutions.
Turning to foreign black money, Sitharaman noted the success of the Black Money Act, enacted in 2015, in deterring illicit wealth. The number of taxpayers declaring foreign assets has risen sharply, from 60,467 in 2021-22 to over 2 lakh in 2024-25.
As of June 2024, the government has raised demands totaling over Rs 17,520 crore in 697 cases under the Black Money Act and initiated 163 prosecutions. The government is also investigating high-profile global leaks such as the Panama Papers, Pandora Papers, HSBC, and ICIJ leaks, with 120 cases under scrutiny.
A Multi-Agency Group (MAG) has been established to coordinate these investigations, resulting in the detection of Rs 33,393 crore in undisclosed income from 582 cases, further demonstrating the government’s commitment to uncovering illicit wealth.
