ED Restores Rs. 274.60 Crore in Proceeds of Crime to Victims in PSL Limited Case
(Judicial Quest News Network)
Delhi,1 March, 2025.In a landmark move to ensure justice and restitution for victims of financial crimes, the Directorate of Enforcement (ED), Delhi Zonal office, has successfully returned property worth Rs. 274.60 Crore to rightful claimants in the high-profile investigation involving M/s PSL Limited. This restitution follows a detailed probe initiated by the ED after the CBI (BS&FC), Mumbai, filed an FIR based on a complaint from Bank of Baroda, accusing M/s PSL Limited and its directors of criminal conspiracy, cheating, and misconduct under various sections of the Indian Penal Code and the Prevention of Corruption Act, 1988.
The ED began its investigation on March 31, 2019, after the alleged offences under Sections 420 and 120B of the IPC, 1860, were recognized as scheduled offences under the Prevention of Money Laundering Act (PMLA). The investigation revealed that the directors of M/s PSL Limited had diverted loan funds amounting to Rs. 274.60 Crore, which were identified as proceeds of crime (POC).
In parallel, liquidation proceedings were initiated against M/s PSL Limited by the National Company Law Tribunal (NCLT), Ahmedabad, on September 11, 2020, and a Liquidator was appointed. Following this, the ED issued a Provisional Attachment Order on December 2, 2021, attaching assets worth the same amount, Rs. 274.60 Crore.
Subsequently, in a ruling from the Hon’ble Delhi High Court on March 23, 2023, the liquidator was instructed to place the attached funds in a fixed deposit with a nationalized bank in the name of the Joint Director, ED. These fixed deposits were received and retained by the ED.
On February 27, 2025, the ED moved the Hon’ble Delhi High Court, seeking the release of the fixed deposits to the liquidator for the purpose of returning the funds to the legitimate claimants and victims of the money-laundering offence. Acting on the ED’s submission, the court ordered the restitution of Rs. 274.60 Crore along with the accrued interest to the liquidator, thereby facilitating the return of the proceeds to the affected parties.
This significant move highlights the ED’s ongoing efforts to restore ill-gotten gains to their rightful owners and reinforce its commitment to combating financial crimes and ensuring justice for victims of such offences.
