The Enforcement Directorate (ED) has successfully restored properties valued at approximately ₹22,280 crore to public sector banks (PSBs) and other legitimate claimants in connection with major financial fraud cases involving high-profile offenders like Vijay Mallya, Nirav Modi, Mehul Choksi, and Bhushan Power and Steel. This was revealed in the Finance Ministry’s annual report for the financial year 2024-25.
Massive Recovery in Vijay Mallya Case
In one of the largest recoveries, the ED restored properties worth ₹14,132 crore to public sector banks in the case involving fugitive businessman Vijay Mallya. Mallya, the former owner of Kingfisher Airlines, was accused of financial mismanagement and loan defaults, which left Indian banks with massive debts. The restored assets are expected to significantly reduce the burden on the affected banks and improve their financial standing.
Recovery in Nirav Modi and Mehul Choksi Cases
In the case of diamond merchant Nirav Modi, the ED has restored assets worth ₹1,052.8 crore to both public and private sector banks. Nirav Modi was implicated in the Punjab National Bank (PNB) scam, where fraudulent transactions amounting to over ₹13,000 crore were unearthed in 2018.
Similarly, the ED has recovered and restored properties valued at ₹2,566 crore to Punjab National Bank and ICICI Bank in connection with Mehul Choksi’s involvement in the same scam. Choksi, Nirav Modi’s uncle and business partner, fled the country after being charged with orchestrating one of India’s biggest banking frauds.
Restitution in Bhushan Power and Steel Case
The ED also restored assets worth ₹4,025 crore to JSW Group in the Bhushan Power and Steel case. Bhushan Power and Steel had been embroiled in a money laundering and financial mismanagement case. The ED filed an affidavit before the Supreme Court seeking the restitution of the attached properties, which was approved by the court in December 2024.
ED’s Ongoing Efforts to Recover Public Money
According to the finance ministry’s report, the ED has been actively working to unravel complex money laundering networks and ensure that the defrauded funds are returned to the rightful claimants. The agency’s efforts reflect a broader strategy to hold financial offenders accountable and strengthen the country’s banking system.
The successful recovery of ₹22,280 crore underscores the government’s commitment to tackling economic offenses and ensuring that the banking sector recovers from the financial damage caused by large-scale frauds. The ED’s actions have been praised by financial experts, who believe that such measures will deter future financial crimes and bolster confidence in the banking system.
