The submission was made in response to a Court order directing the ED and the State Bank of India-led consortium of lenders to ascertain whether Mallya’s attached properties had cleared his debts.
In an affidavit filed on September 8, the ED said that movable and immovable properties worth ₹14,131.6 crores (as in August 2021) stand handed over to the SBI-led consortium.
However, the ED said that the recovery by itself does not cancel or lead to the dropping of the money laundering charges against Mallya.
The agency argued that restoring assets under the Prevention of Money Laundering Act (PMLA) is a statutory mechanism for legitimate claimants to recover their losses.
“The criminal prosecution launched pursuant to the investigation under the PMLA is therefore not rendered infructuous merely because the claimant banks have subsequently recovered substantial amounts from the assets restored to them,” the agency said.
The submission was made in response to a Court order directing the ED and the State Bank of India-led consortium of lenders to ascertain whether Mallya’s attached properties had cleared his debts.
In an affidavit filed on September 8, the ED said that movable and immovable properties worth ₹14,131.6 crores (as in August 2021) stand handed over to the SBI-led consortium.
However, the ED said that the recovery by itself does not cancel or lead to the dropping of the money laundering charges against Mallya.
The agency argued that restoring assets under the Prevention of Money Laundering Act (PMLA) is a statutory mechanism for legitimate claimants to recover their losses.
“The criminal prosecution launched pursuant to the investigation under the PMLA is therefore not rendered infructuous merely because the claimant banks have subsequently recovered substantial amounts from the assets restored to them,” the agency said.
