Decade After FIR, Justice Delivered: ED Returns High-Value Properties to PNB Under PMLA

(Judicial Quest News Network)

Hyderasbad,30, January,2026- In a significant victory for public sector recovery, the Directorate of Enforcement (ED), Hyderabad Zonal Office, has successfully orchestrated the restitution of five prime immovable properties to the Punjab National Bank (PNB).

The assets, originally seized during a high-profile money laundering probe under the Prevention of Money Laundering Act (PMLA), were linked to the M/s Ghanshyam Das Gems & Jewels case. While the properties were valued at approximately Rs. 2.55 Crore at the time of the initial FIR in 2011, their current market value has surged to an estimated Rs. 16 Crore.

Case Background: The Gold Fraud

The legal saga began on October 19, 2011, when the CBI (BS&FC), Bangalore, registered an FIR against the jewellery firm and its Managing Partner, Sanjay Agarwal.

The investigation revealed a sophisticated fraudulent scheme where:

• Forged Documents: Sanjay Agarwal submitted counterfeit bank guarantees, purportedly issued by PNB.
• The Inducement: On the strength of these forged documents, the State Bank of India (SBI) was deceived into releasing 250 Kgs of gold.
• The Laundering: The ED subsequently moved in to trace the proceeds of this crime, leading to the attachment of various assets.

Restitution Details

Following the ED’s rigorous pursuit of the paper trail, the Hon’ble Court granted permission for the restitution of the following assets to PNB to mitigate the financial losses incurred by the banking sector:

Property Type	Location (Districts)	Valuation (2011)	Market Value (Present)
Plot & Agricultural Lands	Ranga Reddy & Medak	Rs. 2.55 Crore	Rs. 16 Crore

This move marks a crucial milestone in the “follow the money” strategy, ensuring that attached proceeds of crime are returned to the victimized financial institutions rather than remaining stagnant in legal limbo.

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The ED investigation uncovered that, upon the fraud coming to light, Sanjay Agarwal and his brothers, Ajay Kumar and Vinay Kumar, swiftly removed the entire stock of gold from their Abids, Hyderabad shop—property mortgaged to Punjab National Bank (PNB)—and liquidated it for cash in the local market.

These proceeds of crime were subsequently channelled into a new firm established by Sanjay Agarwal in December 2012 under his wife’s name. He later incorporated three additional firms in the names of his brothers and one employee.

Investigations further revealed substantial unexplained cash deposits across multiple bank accounts linked to Agarwal’s family members and controlled entities.

Notably, Agarwal procured a passport under the false identity of ‘Srikanth Gupta,’ enabling several overseas trips and the creation of foreign bank accounts for layering illicit funds. The money trail also traced to benami properties acquired in the name of employee Avinash Soni.

Earlier, the ED arrested Sanjay Agarwal on February 11, 2022, and provisionally attached nine immovable properties belonging to him, his family, and benamis. A Prosecution Complaint was filed before the Hon’ble Special PMLA Court, Nampally, Hyderabad, on April 11, 2022.

PNB was urged to file a restitution application under Section 8(8) of the PMLA, 2002, with ED extending its concurrence to restore the attached immovable properties to the fraud victim.

On January 19, 2026, the Hon’ble Special PMLA Court, Nampally, Hyderabad, allowed PNB’s petition, facilitating the restitution of the attached assets.