Indian Finance Minister Nirmala Sitharaman informed the lower house of the parliament on Tuesday that the Enforcement Directorate (ED) restored assets worth USD 26.7 billion to victims of various scams. This includes over USD 16.8 billion recovered for banks through the sale of assets from fugitive businessman Vijay Mallya, as well as USD 1.26 billion from the assets of diamond merchant Nirav Modi.
Sitharaman also revealed that the ED, in collaboration with the banks, approached a special court in Mumbai to auction the assets of Mehul Choksi, another fugitive diamantaire. Choksi, along with Modi, is accused of laundering over USD 15.6 billion from Punjab National Bank (PNB) before fleeing the country.
“The ED has made significant progress in restoring assets to rightful owners under the PMLA framework, which allows the return of assets to bona fide claimants after charges are framed by the special court,” Sitharaman said as she highlighted the efforts of the ED in recovery.
Other recoveries
In the National Spot Exchange Ltd (NSEL) scam, USD 2.1 million has been recovered and given to the banks. Additionally, USD 2.42 million has been recovered from the SRS Group, USD 2.33 million from the Rose Valley Group, USD 22.14 million from Surya Pharmaceuticals Ltd, USD 27.12 million from Nowhera Sheikh and others (Heera Group), and USD 1.53 million from Naidu Amrutesh Reddy and others.
Black Money Act of 2015
Regarding foreign black money, the minister highlighted that the Black Money Act of 2015 is proving to be a strong deterrent for many taxpayers, prompting them to voluntarily disclose their foreign assets. She noted that the number of taxpayers revealing foreign assets has risen to 200,000 in 2024-25, up from 60,467 in 2021-22.
As of June 2024, the Act has led to demands exceeding USD 2.1 billion in 697 cases, and 163 prosecutions have been initiated.
