How Did the ED Restore Properties Worth Rs 12.79 Crore to a Liquidator in a Rs 29.75 Crore Bank Fraud Case?
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Synopsis
In a significant development, the Enforcement Directorate has returned properties valued at Rs 12.79 crore to the liquidator of Dynamic Shells, a company embroiled in a Rs 29.75 crore fraud against Punjab National Bank. This move follows a series of investigations into financial misconduct, emphasizing the agency's commitment to tackling bank fraud.
Key Takeaways
- ED restored properties worth Rs 12.79 crore to the liquidator.
- The fraud case involves Rs 29.75 crore against Punjab National Bank.
- Investigation initiated by CBI on January 21, 2014.
- Properties included land, building, and machinery.
- Liquidator's application was approved by the trial court.
New Delhi, Aug 14 (NationPress) The Enforcement Directorate (ED) has returned properties worth Rs 12.79 crore to the liquidator of a firm implicated in a Rs 29.75 crore fraud against Punjab National Bank, as stated by an official on Thursday.
The properties, valued at Rs 12.79 crore, were restored to Ashok Kumar Gupta, the liquidator of M/s Dynamic Shells (India) Private Limited, in connection with the fraud case involving Dynamic Shells (India) Private Limited and others, according to the official report.
The ED's investigation commenced following an FIR No. RCBDI2014/E/0003 lodged by the Central Bureau of Investigation (CBI) on January 21, 2014, under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act (PC Act), 1988, against Dynamic Shells.
Findings from the investigation indicated that the funds generated from the fraudulent activities of forgery and cheating were funneled through the accounts of various dummy companies, with funds either withdrawn in cash or redirected into the personal accounts of Shambu Prasad Singh, the director of Dynamic Shells.
As part of the proceedings under the Prevention of Money Laundering Act (PMLA), properties worth Rs 21.29 crore were provisionally attached under Section 5(1) of PMLA, 2002, through a Provisional Attachment Order (PAO) issued on March 29, 2017.
A prosecution complaint was filed on July 18, 2018, against Shambu Prasad Singh and others regarding the case.
In the interim, liquidator Ashok Kumar Gupta submitted a request under Section 8(8) of PMLA, 2002, to the trial court on February 15, 2025, for the restoration of an attached property.
The attached assets included a two-story building, an industrial shed, and machinery located at 35, Sector-3, Industrial Growth Centre, Bawal, Haryana, valued at Rs 12.79 crore.
Punjab National Bank has also released its claim over the property in favor of the liquidator, leading the ED to agree to the restoration of the properties to the liquidator, the statement added.
The trial court approved the application for the restoration of properties on June 5, 2025, after which the ED transferred them to the liquidator.
Point of View
We recognize the critical role of the Enforcement Directorate in maintaining financial integrity. This case not only illustrates the complexities of bank fraud but also highlights the importance of accountability in corporate governance. Our commitment to delivering accurate and timely news remains steadfast as we continue to cover such vital stories.
NationPress
19/08/2025
Frequently Asked Questions
What is the amount involved in the bank fraud?
The bank fraud amounts to Rs 29.75 crore against Punjab National Bank.
Who is the liquidator that received the properties?
The properties were restored to Ashok Kumar Gupta, the liquidator of M/s Dynamic Shells (India) Private Limited.
What properties were restored?
The restored properties include land, a two-story building, an industrial shed, and machinery valued at Rs 12.79 crore.
When was the investigation by ED initiated?
The ED initiated its investigation based on an FIR lodged on January 21, 2014.
Which act governs the enforcement actions taken?
The enforcement actions are governed under the Prevention of Money Laundering Act (PMLA), 2002.
