Rs 14,131.6 crore recovered from Vijay Mallya's asset sales: FM Sitharaman

The Enforcement Directorate has restored assets worth Rs 22,280 crore to victims or rightful claimants from cases involving economic offences, the finance minister informed Lok Sabha

Union Finance Minister Nirmala Sitharaman informed the Lok Sabha on Tuesday that Rs 14,131.6 crore has been recovered by public sector banks (PSBs) from the sale of assets belonging to fugitive businessman Vijay Mallya. This is part of the government’s ongoing efforts to address financial crimes and restore funds to affected entities.

 

Vijay Mallya’s case

Mallya, a fugitive businessman and former MP, fled India in 2016 amid allegations of financial irregularities related to Kingfisher Airlines. The Indian government has been seeking his extradition from the United Kingdom to face trial. His assets, seized under the Prevention of Money Laundering Act (PMLA), have been liquidated to recover dues owed to banks and other creditors.

 

Broader recovery efforts in India

Sitharaman highlighted the Enforcement Directorate’s (ED) success in recovering assets from several high-profile economic offenders:

• Vijay Mallya: Rs 14,131.6 crore returned to PSBs.
• Nirav Modi: Properties worth Rs 1,052.58 crore restored to banks.
• Mehul Choksi: Properties worth Rs 2,565.90 crore attached for auction.
• National Spot Exchange Ltd (NSEL): Rs 17.47 crore restored to genuine investors.

 

In total, the ED has restored assets worth Rs 22,280 crore to victims or rightful claimants from cases involving economic offences. 

Addressing the Lower House, Sitharaman reaffirmed the government’s commitment to pursuing economic offenders, even those who have fled the country.

 

“We have gone after them. The ED has collected this money and given it back to the banks,” she said.

 

Black Money Act and foreign asset disclosures

The minister also discussed the impact of the Black Money Act, 2015, noting that it has encouraged taxpayers to voluntarily disclose foreign assets. The number of disclosures rose to 200,000 in 2024-25, from 60,467 in 2021-22.

 

Under the Act, as of June 2024, demands of more than Rs 17,520 crore have been raised in 697 cases, and a total of 163 prosecutions have been launched.