Black Money and Fraud: Govt’s Aggressive Push Restores Billions to Banks and Investors

GG News Bureau
New Delhi, 24th Dec. Union Finance Minister Nirmala Sitharaman announced on Tuesday that the Enforcement Directorate (ED) has successfully recovered and restored assets worth Rs 22,280 crore to victims and rightful claimants, underscoring the government’s determined approach to combating economic offenses.

Addressing the Lok Sabha during discussions on the first batch of Supplementary Demands for Grants, Sitharaman highlighted the ED’s notable achievements in recovering assets linked to high-profile cases. She stated that the recovered funds have primarily been returned to public sector banks and defrauded investors, demonstrating the government’s commitment to financial accountability.

Major Recoveries by ED

The Finance Minister detailed the ED’s efforts in prominent cases, including:

• Vijay Mallya Case: Assets worth Rs 14,131.6 crore restored to public sector banks.
• Nirav Modi Case: Properties valued at Rs 1,052.58 crore handed back to banks.
• Mehul Choksi Case: Assets worth Rs 2,565.90 crore attached and slated for auction.
• NSEL Scam: Assets worth Rs 17.47 crore recovered and returned to defrauded investors.

“Under the Prevention of Money Laundering Act (PMLA), the ED has ensured the restoration of assets worth Rs 22,280 crore in major cases. The government is committed to recovering and returning stolen wealth to its rightful owners,” Sitharaman affirmed.

Action Against Foreign Black Money

Turning her focus to foreign black money, Sitharaman credited the Black Money Act, introduced in 2015, for fostering transparency and voluntary disclosures. She noted a sharp increase in taxpayers declaring foreign assets—from 60,467 in 2021-22 to over 2 lakh in the fiscal year 2024-25.

Key developments under the Black Money Act include:

• Demand Raised: Rs 17,520 crore in 697 cases as of June 2024.
• Prosecutions Initiated: 163 cases launched.
• Undisclosed Income Detected: Rs 33,393 crore across 582 cases.

To tackle high-profile leaks, including the Panama and Pandora Papers, the government has set up a Multi-Agency Group (MAG). This task force ensures coordinated action against undisclosed foreign assets, with 120 cases currently under investigation.

Government’s Determination

Sitharaman reiterated the government’s unwavering stance against economic offenses and illicit wealth. “We are after them. The ED has ensured that stolen money is returned to banks and investors,” she said. She also emphasized the importance of swift, coordinated efforts in global investigations, sending a strong message to economic offenders.

The Finance Minister concluded by reaffirming the government’s resolve to strengthen mechanisms to detect and recover illicit wealth, ensuring justice for defrauded institutions and individuals alike.