New Delhi, (Samajweekly) The Centre on Thursday informed the Supreme Court that 66.91 per cent of the total loss caused to various banks — due to fraud committed by fugitives Vijay Mallya, Nirav Modi, and Mehul Choksi — has been returned back to them by the Enforcement Directorate (ED).
Solicitor General Tushar Mehta, representing the ED, submitted before a bench headed by Justice A.M. Khanwilkar that “timely attachment of proceeds of crime has led to attachment of assets worth of Rs 19,111.20 crore out of total fraud of Rs 22,585.83 crore by three fugitive offenders namely Vijay Mallya, Nirav Modi, and Mehul Choksi”.
“The proceeds of crime of Rs 98,368 crore were identified and attached under Section 5 of the PMLA out of which, proceeds of crime of Rs 55,899 crore has been confirmed by Adjudicating Authority and substantial part of attached proceeds of crime are still under adjudication by the Adjudicating Authority. In addition to this, proceeds of crime of Rs. 853.16 crore has already been confiscated to the Central Government under the orders of the competent court.”
“Out of the attached proceeds of crime from these 3 individuals, assets of Rs 15,113.91 crore has already been returned back to public sector banks by the ED u/s 8(7) PMLA through the order of the Court and assets worth Rs 335.06 crore has been confiscated to the Government of India i.e. 66.91 per cent of total loss to the banks in these 3 cases has been returned back to them by the ED.”
Mehta also submitted it is pertinent to mention that the SBI has already recovered cash of Rs 7,975.27 crore by selling a part of assets returned to it by the ED and the process of liquidation of other restituted assets by the banks is continuing.
The Centre added that the investigation in 57 cases of terror and Maoist financing has resulted in identification of proceeds of crime of Rs 1,249 crore and attachment of proceeds of crime of Rs 982 crore (256 properties) and filing of 37 prosecution complaints and conviction of two terrorists under PMLA.
“The attachment of proceeds of crime include properties of Hafiz Mohammad Sayeed (UN designated terrorist), Syed Salahuddin (Head of Hijbul Mujahideen) and Iqbal Mirchi (involved in Mumbai blasts and international narcotics smuggler) also,” Mehta said.
Mehta said PMLA is a new law which came into force on July 1, 2005, and the process of filing of prosecution complaint started mainly from 2012 and 2013. He added till date, prosecution complaint has been filed in 930 cases which are under different stages of trial as on date 21 persons have been convicted under the PMLA. “In last 17 years, 4,850 cases have been taken up for investigation under the PMLA. The investigation in these offences were carried out by using investigative tools as provided under the PMLA including 2,883 searches and arresting 313 persons,” he saida.
On Wednesday, Mehta submitted before the bench, also comprising Justices Dinesh Maheshwari and C.T. Ravikumar, that the ED only arrested 313 people under the Act in the last 20 years.
The top court is hearing 242 petitions challenging some provisions of the Prevention of Money Laundering Act (PMLA) including the stringent bail conditions and arrest of people without supply of ECIR (equivalent to FIR).
Over the past few weeks, a battery of senior advocates, including Kapil Sibal, Abhishek Manu Singhvi, Mukul Rohatgi, Sidharth Luthra, Amit Desai, and others have made submissions before the top court on various aspects related to potential misuse of PMLA provisions introduced by way of amendments to the Act.
The law has been criticised on various aspects: stringent bail conditions, non-communication of grounds of arrest, arrest of persons without supply of ECIR (akin to FIR), broad definitions of money laundering and proceeds of crime, and statements given by accused during investigation made admissible as evidence during trial.
