New Delhi: The Enforcement Directorate (ED) has received a pat on its back from the Supreme Court over its consistent and successful efforts in restituting properties of innocent homebuyers who were caught up in the 1,267.79 crore fraud case, involving a leading bank, and saw the possession of their dwelling units delayed indefinitely.
The case pertains to the Syndicate Bank fraud (2011-16) involving Bharat Bomb & Others, who defrauded the bank to the tune of Rs 1,267.79 crore. The key accused, Bharat Bomb, used the proceeds of crime to acquire Royal Raj Vilas as well as its developer, M/s Udaipur World Entertainment Pvt. Ltd and created a complex web of illegal financial dealings, which delayed and deprived the homebuyers of their flats.
The ED launched an investigation in 2016, attached the properties of the accused and pursued a legal battle to penalise the fraudulent developers and restore the rights of homebuyers.
The investigative agency’s probe into financial impropriety and money laundering under the Prevention of Money Laundering Act (PMLA) 2002 earned it praise from the Apex Court.
The case first emanated from the FIRs lodged by the Central Bureau of Investigation (CBI) against Bharat Bomb and others. According to its chargesheet, the accused misappropriated Rs 1267.79 crores through companies and firms held in their names or those of family members.
The ED initiated an investigation into the bank fraud on June 11, 2016, under PMLA, 2002 and issued orders attaching a total of 365 unsold flats/units of inventory, 17 commercial units and two plots.
M/s Udaipur World Entertainment Pvt. Ltd, the corporate debtor, was admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT) Mumbai on April 16, 2021, after a petition was filed by homebuyers under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016.
In 2022, the NCLT approved the company’s resolution plan and vacated the ED’s attachment order, leading to a jurisdictional dispute.
The ED, in its argument, claimed that the NCLT lacked authority to set aside an order under Section 8 of the PMLA, 2002.
The Apex Court, in its order dated October 10, 2025, lauded the efforts of ED in “restoring the attached properties and securing the interests of genuine and innocent home buyers.”
(IANS)
