New Delhi, Oct 14 (UNI) The Supreme Court has appreciated the efforts of the Enforcement Directorate (ED) in restituting property, presently valued at around Rs 150 crore, to innocent homebuyers.
The case originates from First Information Reports registered by the CBI against Bharat Bomb and others for defrauding Syndicate Bank (now Canara Bank) of Rs 1,267.79 crore between 2011 and 2016. The ED initiated a money laundering investigation as the offences involved are scheduled under the PMLA.
The investigation revealed that the proceeds of the bank fraud were layered for the acquisition of Udaipur World Entertainment Pvt. Ltd. and the development of its project, ‘Royal Rajvilas’. Consequently, the ED attached 365 unsold flats, 17 commercial units, and 2 plots of the company in 2019.
The corporate debtor was later admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Mumbai. In February 2022, the NCLT approved a resolution plan and also vacated the ED’s attachment order.
The ED challenged this NCLT order before the Rajasthan High Court, contending that the NCLT lacked jurisdiction to set aside an order passed under the PMLA.
A Division Bench of the High Court, in its judgment dated March 28, 2025, observed that the single-judge bench had vacated its stay order without considering the serious jurisdictional issue. It noted that removing the attachment could frustrate the pending PMLA appeal and amount to disposing of property involved in money laundering before the trial’s conclusion.
This High Court judgment was challenged before the Supreme Court via a Special Leave Petition. The Supreme Court, considering the interest of the homebuyers, directed the ED to restitute the property to innocent parties.
Following this direction, the ED verified the bona fides of the homebuyers and proposed a settlement. The Directorate offered to restitute all properties, except 11 units belonging to 8 accused individuals or related parties, to the innocent homebuyers and the Successful Resolution Applicant (SRA) for further construction.
The Supreme Court, in its order disposed of the SLP, lauding the ED’s efforts to restitute the units to innocent homebuyers and prevent the dissipation of the proceeds of crime by the accused.
The ED’s investigation into the Syndicate Bank fraud under the PMLA is ongoing.
