ED Hyderabad Auctions Seized Hawker 800A; Rs. 3 Crore Proceeds to Be Applied for Restitution
(Judicial Quest News Network)
Hyderabad 3 July 2026 — In a first-of-its-kind enforcement action, the Directorate of Enforcement (ED), Hyderabad Zonal Office, on 1 July 2026, auctioned a seized Hawker 800A aircraft through MSTC Limited for a sale consideration of Rs. 3 crores.
The aircraft had been attached in connection with a Prevention of Money‑Laundering Act (PMLA), 2002 prosecution arising out of alleged large‑scale financial fraud perpetrated by M/s Capital Protection Force Pvt. Ltd., its promoter Amardeep Kumar, and others.
Background and seizure
The Hawker 800A was recovered and provisionally seized by the ED during a search operation on 7 March 2025 at Rajiv Gandhi International Airport, Hyderabad, conducted as part of an investigation based on three FIRs registered by the Economic Offence Wing, Cyberabad, against Falcon Group (Capital Protection Force Pvt. Ltd.) and associated persons.
The allegations underpinning the probe assert that the company and its directors orchestrated a bogus invoice‑discounting Ponzi scheme, duping investors of approximately Rs. 792 crores by promising inflated returns on non‑existent invoice discounting transactions.
Adjudication and permission to sell
Following seizure, the ED filed an Original Application before the learned Adjudicating Authority under the PMLA seeking confirmation of attachment.
The Adjudicating Authority confirmed the attachment by order dated 18 August 2025. Thereafter, invoking Rule 4(2) of the Prevention of Money‑Laundering (Taking possession of attached or frozen properties confirmed by the Adjudicating Authority) Rules, 2013, the ED sought permission to sell the attached aircraft.
The Adjudicating Authority, PMLA, granted leave to auction the asset by order dated 20 November 2025, paving the way for the sale conducted through the government e‑auction portal managed by MSTC Limited.
Prosecution and arrests
The ED’s investigation have led to multiple arrests and onward prosecution. Earlier, three persons Sandeep Kumar (brother of Amardeep Kumar), chartered accountant Sharad Chandra Toshniwal, and Aryan Singh Chhabra (then CEO of Falcon Invoice Discounting) were arrested in connection with the probe.
A prosecution complaint was filed by the ED before the competent jurisdictional court on 29 September 2025.
Investigation continues into the role of other persons and entities alleged to have facilitated the scheme.
Application of sale proceeds
The sale consideration of Rs. 3 crores realized from the auction will be applied for restitution to genuine investors, subject to the leave of the Hon’ble Special Court constituted under the PMLA, 2002, and in accordance with statutory procedures.
The ED has emphasized that utilization of the proceeds will follow the legal framework for victim compensation and restitution under the PMLA, and any distribution will be contingent on judicial sanction and completion of requisite formalities.
Statement and law‑enforcement significance
The ED said the disposal of the aircraft marks a robust exercise of its powers to identify, trace, attach and confiscate proceeds of crime, and to prevent accused parties from deriving benefit from illicitly obtained assets. “The action underlines the Agency’s commitment to enforce the provisions of the PMLA, 2002 by pursuing prosecution, depriving offenders of ill‑gotten gains, and facilitating restitution to victims,” an ED spokesperson stated.
The agency further reiterated that further investigation is ongoing and additional recoveries and legal actions may follow.
Legal implications and next steps
The confirmation of attachment, the Adjudicating Authority’s permission to sell under Rule 4(2), and the subsequent auction represent an integrated enforcement and adjudicatory process under the PMLA framework.
The ED’s move to monetize attached assets for victim restitution is likely to draw judicial scrutiny through applications for leave, claims by third parties (if any), and prosecutorial filings already pending before the Special Court and other fora.
Interested stakeholders, including claimants and the accused, may seek appropriate relief before the designated judicial authorities in accordance with law.
Contacted for comment, counsel for the accused and representatives of Capital Protection Force Pvt. Ltd. did not immediately respond.
The ED has indicated that the investigation remains active and further developments will be communicated as the probe progresses and as directed by the adjudicating and prosecuting forums.
