New Delhi, Nov 17 (UNI) The Enforcement Directorate (ED), Mumbai Zonal Office, on Monday said that it has initiated the process for the restitution of immovable properties worth Rs 55.85 crore to the State Bank of India in the case of Varron Aluminium Private Limited.
“These assets were provisionally attached by the ED under Section 5 of the Prevention of Money Laundering Act (PMLA), as Varron Aluminium Private Limited and other group companies/persons had cheated the Bank and siphoned off bank funds for their personal benefits,” an official said.
The ED initiated a PMLA investigation based on FIRs registered by the CBI, BS&FC, Mumbai, against Varron Aluminium Private Limited (VAPL) and others for defrauding the Bank of India and SBI to the tune of Rs 293.74 crore and Rs 401.25 crore, respectively. It was alleged by the investigating agency in its chargesheet that a Manual Letter of Credit of Rs 300 crore was issued by Canara Bank on behalf of VAPL in favour of its group company VACPL, and the same was discounted by the Bank of India against fake documents without proper verification.
The ED investigation revealed that payment for every Letter of Credit was made by opening a new letter of credit in favour of VAPL, VIPL, and other shell entities. This process has been adopted since the opening of the very first Letter of Credit. Credits were taken cyclically to repay old loans, reduce cash credit liability availed by VAPL and group companies from other banks, and inflate the books of accounts. During the investigation, the ED identified the Proceeds of Crime (POC) and issued two Attachment Orders for the attachment of immovable properties worth Rs 179.27 crore in total.
Section 8(8) of the PMLA mandates the restitution of attached/confiscated properties to rightful owners/legitimate claimants and victims of money laundering. This provision must be utilised to restore assets to rightful owners when it is determined that the properties were acquired through illicit means but legally belong to innocent parties.
The ED has been making continuous efforts to restitute properties to rightful owners/legitimate claimants and victims of money laundering and encourages all affected parties, including banks and other financial institutions, to use the provision of Section 8(8) of the PMLA for the restitution of properties attached/confiscated by the ED and the restoration of their claims concerning such properties.
Due to the ED’s continuous efforts to restore the claims of legitimate claimants, SBI filed a miscellaneous application in the Court of the Honourable Sessions Judge, Special Court, Bombay, under Section 8(8) of the PMLA, claiming three attached properties worth Rs. 55.85 crore, as per the valuation done in 2021.
In pursuance of the aforementioned objectives, during the court proceedings, the ED filed an affidavit before the Honourable Special PMLA Court, Mumbai, expressing its willingness for the restitution of the attached properties claimed by SBI through its miscellaneous application. Accordingly, the Honourable Special PMLA Court, vide its Order dated 26.09.2025, allowed SBI’s application and ordered the restoration of three immovable properties valued at Rs. 55.85 crore to it.
