Govt has handed over Vijay Mallya’s properties worth Rs.14,131 crore to Banks for Loan Recovery
Properties worth ₹14,131 crore, once owned by fugitive businessman Vijay Mallya, have been seized and handed over to public and private sector banks to recover part of his massive debts, Finance Minister Nirmala Sitharaman informed Parliament on Tuesday.
The Finance Minister highlighted that the Enforcement Directorate (ED) has restored a total of ₹22,280 crore in assets to banks and creditors. These recoveries include properties linked to other economic offenders such as Mehul Choksi and Nirav Modi.
Breakdown of Recoveries
- ₹14,131 crore from Vijay Mallya.
- ₹1,052 crore from Nirav Modi.
- ₹2,565 crore from Mehul Choksi.
- ₹17.5 crore in the National Spot Exchange Ltd (NSEL) case.
“In money laundering cases, the ED has successfully restored properties valued at ₹22,280 crore. Even if offenders fled the country, we pursued them to recover the money,” Ms. Sitharaman asserted in the Lok Sabha.
Defence Against Criticism of ED
Ms. Sitharaman defended the ED’s performance amidst criticism over its low conviction rate. Opposition leader Randeep Surjewala pointed out that the agency had secured convictions in only 42 cases (4.6%) out of over 900 filed under the Prevention of Money Laundering Act (PMLA) between 2019 and 2023.
The Supreme Court had also criticized the ED in August, urging the agency to improve the quality of its prosecutions. Despite these challenges, Ms. Sitharaman emphasized that the government is committed to recovering money owed to banks and holding offenders accountable.
Efforts to Track ‘Black Money’
Ms. Sitharaman also addressed the government’s progress in tackling black money—illegally acquired funds hidden abroad. She noted that the Black Money Act (2015) has led to a significant increase in disclosures of foreign assets by taxpayers, rising from 60,467 in 2021-22 to over two lakh in 2024-25.
Key statistics under the Black Money Act:
- Nearly 700 cases filed.
- 163 prosecutions initiated.
- Over ₹17,000 crore recovered, including assets linked to Panama, Paradise, and Pandora leaks.
A multi-agency group is investigating these cases in detail, the Finance Minister said.
Diplomatic Push for Extradition
The discussion comes after Prime Minister Narendra Modi met British Prime Minister Keir Starmer during the G20 Summit in Brazil last month. Mr. Modi urged his counterpart to expedite the extradition of Vijay Mallya and Nirav Modi.
Vijay Mallya, accused of defaulting on massive bank loans, fled India in 2016. Nirav Modi is wanted for defrauding the Punjab National Bank of thousands of crores. India is also pursuing the extradition of Sanjay Bhandari, accused in illegal arms deals.
The government reiterated its commitment to tracking economic offenders and recovering public funds, despite challenges in securing convictions.
