ED Secures Rs. 79.20 Crore in Restitution of Assets to State Bank of India in Major Money Laundering Case

(Judicial Quest News Network)

Hyderabad,11, February, 2025.The Directorate of Enforcement (ED), Hyderabad Zonal Office, has achieved a significant victory in its ongoing efforts to combat financial crime, successfully facilitating the restitution of assets worth Rs. 79.20 Crore to the State Bank of India (SBI). This action is part of the ED’s investigation into a high-profile money laundering case involving M/s Musaddilal Jewellers Pvt. Ltd. and other entities.

In a move that strengthens its commitment to restoring stolen assets to rightful claimants, the ED’s initiative led SBI to file restitution applications under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002. These petitions were presented before the Special PMLA Court, Hon’ble Metropolitan Sessions Judge, Nampally, Hyderabad, seeking the release of moveable properties that were seized by the ED. The Court, after a thorough review, ruled in favor of SBI, allowing the release of jewellery valued at Rs. 79.20 Crore—seized from commercial premises of Musaddilal Jewellers Pvt. Ltd.

The Case: Uncovering a Web of Deceptive Transactions

The money laundering case revolves around Musaddilal Jewellers Pvt. Ltd., which was found to have deposited over Rs. 111 Crore in demonetized currency immediately after the government’s demonetization decision in 2016. This deposit was done under the pretext of receiving advance payments from around 6,000 fake customers, using fabricated invoices under Rs. 2 Lakh each.

As the investigation progressed, the ED discovered that the demonetized money was transferred into various bank accounts, which was then used to purchase gold bullion. This gold was later sold, resulting in an additional Rs. 28 Crore in Proceeds of Crime (POC). Further investigation revealed that SBI had extended significant credit facilities to Musaddilal Jewellers, which were not repaid, causing the loan accounts to turn into Non-Performing Assets (NPA) by July 2019. By March 2023, the outstanding dues to SBI exceeded Rs. 120 Crore.

Previous Seizures and Attachment of Assets

This restitution marks an important phase in the investigation that has already seen significant action. Earlier, the ED had seized moveable properties worth Rs. 83.30 Crore during search operations conducted on January 12, 2017, and April 15, 2019. Additionally, the ED had provisionally attached both moveable and immoveable properties worth Rs. 130.57 Crore, including the earlier seizures, further strengthening the case.

ED’s Commitment to Financial Justice

This development highlights the ED’s dedication to restoring properties to those harmed by financial crimes and ensuring that justice is served to the victims. With this ruling, the ED continues to make strides in its mission to dismantle financial fraud and return stolen assets to their rightful owners. The ED remains steadfast in its resolve to fight financial crimes, ensuring that perpetrators are held accountable and that the interests of victims are protected.

This case also serves as a powerful reminder of the ED’s critical role in upholding financial integrity and ensuring that financial crimes do not go unchecked.

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