New Delhi: The Directorate of Enforcement (ED) restored properties valued at Rs 40 crore to Indian Bank in connection with a money laundering investigation against Saravana Stores (Gold Palace) and its partners, an official said on Saturday.
Earlier, the ED had restored three properties valued at Rs 235 crore to the bank on February 17, 2025. In the same case, the official said, adding that the total restitution in this case now stands at Rs 275 crore.
The loan applicant allegedly caused a wrongful loss of Rs 312.13 crore to Indian Bank. The ED’s restoration of properties is being done in support of an application filed by the Indian Bank under Section 8(8) of the PMLA, 2002, the official said in a statement.
The ED initiated an investigation based on an FIR registered by the CBI under various Sections of the IPC, 1860, and the Prevention of Corruption Act, 1988, on a complaint filed by the Indian Bank.
The FIR alleges that the partners of Saravana Stores (Gold Palace) fraudulently availed Rs 240 crore in credit facilities but diverted funds for unauthorised purposes.
The FIR said that the loan applicant submitted false and overstated stock statements, misused working capital limits, routed money to personal accounts, removed hypothecated stock without the bank’s knowledge, and acquired properties through diversion of bank funds.
The loan account became a non-performing asset (NPA) on July 7, 2019, and it was later classified as fraud and willful default, causing a wrongful loss of Rs 312.13 crore to Indian Bank.
During the PMLA investigation, it was found that the accused systematically diverted and misappropriated bank funds.
The ED provisionally attached immovable properties worth Rs 274.76 crore vide two Provisional Attachment Orders, which were later confirmed by the Adjudicating Authority on January 24, 2023 and October 27, 2023.
The ED subsequently filed a Prosecution Complaint before the Special Court (PMLA) on January 18, 2024.
Indian Bank sought restoration of the attached properties under Section 8(8) of PMLA, 2002, following which the ED initiated measures and attachment was done for the benefit of the lender.
The Special Court, by order dated February 17, 2025, restored three properties valued at Rs 235 Crore.
Indian Bank sought additional properties worth Rs 40 crore before the High Court and the ED, considering public interest and the bank’s substantial loss, expressed no objection.
The High Court, by order dated October 23, 2025, restored the properties worth Rs 40 crore to Indian Bank, said the statement.
(IANS)
