Further, assets worth Rs 15,113 crore have been confiscated and restituted to public sector banks, he said.
The Directorate of Enforcement (ED) has recorded 490 bank fraud cases related to non-performing assets (NPAs) of Rs 20 crore or more in the last five years under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), the government informed Parliament on Tuesday.
“As on July 20, 2023, proceeds of crime amounting to Rs 26,732.68 crore approximately have been attached/freezed, 82 persons have been arrested and 80 prosecution complaints have been filed before the special court, PMLA in these cases,” Minister of State for Finance Bhagwat Karad said in a written reply to the Rajya Sabha.
Further, assets worth Rs 15,113 crore have been confiscated and restituted to public sector banks, he said.
In the case of an account classified as NPA, banks initiate recovery action under various recovery mechanisms, such as filing a suit in civil courts or in debts recovery tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, filing of cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, and through negotiated settlement/compromise and sale of NPAs.
Further, in respect of fraud cases, as per the RBI’s Master Direction on Frauds, banks are required to lodge complaints with law enforcement agencies, he said.
He also said that NPAs over Rs 20 crore and above of Scheduled Commercial Banks and All India Financial Institutions have seen a reduction decline in the last five financial years.
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