New Delhi: In a major step toward restoring the Proceeds of Crime (POC) to their rightful claimants, the Directorate of Enforcement (ED), Delhi Zonal Office, has successfully restituted property worth Rs. 274.60 crore to victims and legitimate claimants in the investigation involving M/s PSL Limited.
The ED initiated this investigation following an FIR filed by the CBI (BS&FC), Mumbai, based on a complaint from the Bank of Baroda, Mumbai. The complaint accused M/s PSL Limited and its directors of criminal conspiracy, cheating, and misconduct under Sections 120B and 420 of the IPC, along with Section 13(2) and Section 13(1)(d) of the Prevention of Corruption Act, 1988.
In response, the ED launched its investigation on March 31, 2019, registering ECIR, as the alleged offences under Sections 420 and 120B of the IPC are classified as scheduled offences under the Prevention of Money Laundering Act (PMLA). The probe uncovered that the directors of M/s PSL Limited had misappropriated loan funds totalling Rs. 274.60 crore, which were identified as POC.
Concurrently, on September 11, 2020, the National Company Law Tribunal (NCLT), Ahmedabad, began liquidation proceedings against M/s PSL Limited and appointed a liquidator.
During the investigation, the ED issued a Provisional Attachment Order on December 2, 2021, attaching assets worth Rs. 274.60 crore belonging to M/s PSL Limited. Following an order from the Delhi High Court on March 23, 2023, the liquidator was instructed to place the liquidation proceeds, totalling Rs. 274.60 crore, in a fixed deposit with a nationalised bank in the name of the Joint Director, ED. As per the court’s directive, the fixed deposits were received and are now under the ED’s possession.
In line with the objectives of the PMLA to restore the POC to bona fide and legitimate claimants, the ED on Feb 27 submitted a no-objection application before the Delhi High Court for the release of the fixed deposits and their accrued interest to the liquidator. This would enable the further restitution of these assets to the rightful victims and claimants of the money-laundering offence.
Following the ED’s submission, the Delhi High Court passed an order to restitute the fixed deposits amounting to Rs. 274.60 crore, along with the accrued interest, to the liquidator for distribution to the legitimate claimants and victims of the offence.
(IANS)
