ED restores ₹274-cr worth assets in bank 'fraud' case

New Delhi, Mar 1 (PTI) The Enforcement Directorate has restored assets worth ₹274 crore in a money laundering investigation linked to an alleged bank loan fraud.

The case pertains to a company named PSL Limited. The money laundering case of 2020 stems from a CBI FIR which was filed on a complaint by the Bank of Baroda, Mumbai against the said company and its directors on charges of criminal conspiracy, cheating and criminal misconduct.

The directors of PSL Limited "diverted" loan funds of ₹274.60 crore which was nothing but proceeds of crime, the federal agency said in a statement issued on Friday.

The National Company Law Tribunal (NCLT) also initiated liquidation proceedings against PSL Limited in September 2020 and appointed a liquidator.

The ED said it attached assets worth ₹274.60 crore during the course of investigation and the Delhi High Court in March, 2023 directed to place the liquidation proceeds (of ₹274.60 crore) in a fixed deposit with a nationalised bank in the name of the joint director of ED.

"On February 27, considering the intent of PMLA to restitute/ restore the proceeds of crime to bona fide legitimate claimants and victims of the offence of money laundering, the ED submitted no objection before the Delhi High Court for release of the FDs of ₹274 crore, along with interest accrued, to the liquidator to restore such properties to the bona fide legitimate claimants and victims of the offence," the agency said.

The high court subsequently issued an order for the restitution of the attached assets, it said.

"The restitution of the properties to the rightful claimant and victim marks a significant step in the ED's ongoing efforts to ensure that the proceeds of crime are returned to those affected.

"The ED continues to uphold its commitment to combating financial crimes and ensuring justice for victims of such crimes," the statement said.