New Delhi: The Enforcement Directorate has investigated 1,105 bank fraud cases under the Prevention of Money Laundering Act (PMLA) and has attached proceeds of crime worth Rs 64,920 crore, Finance Minister Nirmala Sitharaman said in the Lok Sabha on Monday.
She also said that action had been taken under the Fugitive Economic Offenders Act (FEOA) against those evading Indian law by staying abroad.
This was a reference to high-profile cases such as the Nirav Modi case, including the Punjab National Bank fraud, and cases involving Vijay Mallya.
She pointed out that actions taken under the law include confiscation of properties, proceeds of crime, and benami properties.
“ED investigated 1,105 bank fraud cases under PMLA with attachment of proceeds of crime amounting to Rs 64,920 crore. 150 accused have been arrested, and 277 prosecution complaints were filed, while accused have been declared Fugitive Economic Offenders under Fugitive Economic Offenders Act (FEOA),” the Finance Minister said.
According to her, assets worth Rs 15,186 crore have been confiscated, of which Rs 15,183 crore has been restored to public sector banks.
The Finance Minister was replying to a discussion on the Bill to amend the Insolvency and Bankruptcy Code (IBC), as some members had mentioned fugitive economic offenders.
She also mentioned that Rs 104 crore had been recovered in the Punjab & Maharashtra Co-operative (PMC) Bank scam, and that assets worth Rs 725 crore had been confiscated under FEOA provisions.
In the scam, which was unearthed in 2019, PMC Bank granted over 70 per cent of its total loans to HDIL (Housing Development and Infrastructure Ltd) and its affiliates.
The Rs 6,500 crore scam involving the bank’s bad loans had been concealed, causing a crisis for thousands of depositors.
Key officials, including the chairman and MD, were arrested, and properties were seized. The RBI then approved a plan to merge PMC Bank with Unity Small Finance Bank, allowing for the gradual return of funds to depositors.
(IANS)
