ED Facilitates Restoration of Rs. 235 Crore Immovable Properties to Indian Bank in Major Money Laundering Case Involving Saravana Stores
(Judicial Quest News Network)
The Directorate of Enforcement (ED) in Chennai has achieved a significant legal victory by successfully facilitating the restoration of immovable assets worth Rs. 235 Crore to Indian Bank. This success is part of an ongoing investigation into a money laundering case involving M/s Saravana Stores (Gold Palace) and its associated partners.
The case traces its origins back to an FIR lodged by the Central Bureau of Investigation (CBI) under several sections of the Indian Penal Code (IPC), 1860, as well as the Prevention of Corruption Act, 1988. The complaint, filed by Indian Bank, alleged a massive fraudulent loss amounting to approximately Rs. 312 Crore. Following this, the ED initiated its investigation under the Prevention of Money Laundering Act (PMLA) to determine the extent of the illegal activities and uncover the misappropriation of funds.
As part of its probe, the ED attached immovable properties worth a staggering Rs. 274.75 Crore, which were subsequently confirmed as proceeds of crime. The ED took further legal action by filing a Prosecution Complaint before the Hon’ble Special Court under the PMLA.
In a pivotal move, Indian Bank, as the aggrieved party in the case, filed an application under Section 8(8) of the PMLA, 2002, requesting the restoration of the attached properties to recover its dues. The ED, recognizing the importance of the matter and in the interest of the public and financial institutions, lent its support to Indian Bank’s application. The ED presented compelling legal arguments before the Special Court, emphasizing the need for asset restitution to facilitate the bank’s recovery process.
After a thorough examination of all evidence and legal contentions, the Hon’ble Special Court ruled in favour of Indian Bank, ordering the restoration of immovable properties valued at Rs. 235 Crore. This landmark ruling highlights the ED’s ongoing commitment to ensuring the rightful return of assets to their legitimate owners, thereby supporting financial institutions in their efforts to recover misappropriated funds.
This decision reaffirms the ED’s role in upholding financial accountability and legal processes. By facilitating the restitution of misappropriated assets, the ED continues to safeguard the integrity of the financial system and ensure that those who have been wronged receive appropriate redress.
