Did ED Restore Properties Worth Rs 40 Crore to Indian Bank?
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Synopsis
In a significant move, the Directorate of Enforcement (ED) has restored properties valued at Rs 40 crore to Indian Bank, linked to a money laundering investigation involving Saravana Stores. This brings the total restitution to Rs 275 crore. Explore the implications of this case and the ED's ongoing efforts in combating financial fraud.
Key Takeaways
- ED restored Rs 40 crore to Indian Bank.
- Total restitution now stands at Rs 275 crore.
- Investigation initiated by CBI under various laws.
- Loan account classified as NPA and fraud.
- Significant implications for financial integrity.
New Delhi, Dec 13 (NationPress) The Directorate of Enforcement (ED) has restored properties worth Rs 40 crore to Indian Bank, linked to a money laundering probe involving Saravana Stores (Gold Palace) and its associates, an official disclosed on Saturday.
Previously, on February 17, 2025, the ED had returned three assets valued at Rs 235 crore to the bank in the same case, bringing the total recovery in this instance to Rs 275 crore.
The loan applicant is alleged to have inflicted a wrongful loss of Rs 312.13 crore on Indian Bank. The ED's action is in response to a petition submitted by Indian Bank under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002, as stated by the official.
An investigation was triggered by an FIR filed by the Central Bureau of Investigation (CBI) under various provisions of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988, following a complaint from Indian Bank.
The FIR claims that the associates of Saravana Stores fraudulently accessed Rs 240 crore in credit but misappropriated the funds for unauthorized activities.
It states that the loan applicant submitted fraudulent and inflated stock reports, misused working capital limits, transferred funds to personal accounts, illicitly removed hypothecated stock, and acquired properties through the misdirection of bank funds.
The loan account was classified as a non-performing asset (NPA) on July 7, 2019, and subsequently categorized as fraud and willful default, resulting in a wrongful loss of Rs 312.13 crore to Indian Bank.
During the PMLA inquiry, it was determined that the accused systematically misappropriated and diverted bank resources.
The ED provisionally attached properties worth Rs 274.76 crore via two Provisional Attachment Orders, confirmed by the Adjudicating Authority on January 24, 2023, and October 27, 2023.
Following this, the ED submitted a Prosecution Complaint to the Special Court (PMLA) on January 18, 2024.
Indian Bank requested the restoration of the attached assets under Section 8(8) of the PMLA, 2002, leading the ED to act and restore the properties for the benefit of the bank.
The Special Court ordered the restoration of three properties valued at Rs 235 crore on February 17, 2025.
Indian Bank then sought additional assets worth Rs 40 crore from the High Court, which the ED accepted, considering public interest and the bank's significant losses.
On October 23, 2025, the High Court ordered the restoration of properties worth Rs 40 crore to Indian Bank, as stated in the official release.
Point of View
The ED's actions reflect a robust commitment to tackling financial misconduct. The restoration of properties serves to reassure stakeholders in the banking sector and reinforces the necessity of stringent measures against money laundering. As the nation grapples with financial integrity, such actions are pivotal in maintaining trust in our banking systems.
NationPress
13/12/2025
Frequently Asked Questions
What prompted the ED's investigation into Saravana Stores?
The ED's investigation was initiated based on an FIR filed by the CBI, highlighting allegations of fraudulent practices involving substantial credit facilities.
How much total restitution has the ED made in this case?
The total restitution in this case now amounts to Rs 275 crore, following the recent restoration of properties worth Rs 40 crore.
What is the significance of Section 8(8) of the PMLA?
Section 8(8) of the PMLA allows financial institutions like Indian Bank to seek the restoration of attached properties in cases of money laundering.
What were the allegations against Saravana Stores?
The allegations include fraudulent availing of credit facilities and misappropriation of funds for unauthorized purposes, leading to significant financial losses.
What is the status of the loan account linked to Saravana Stores?
The loan account was declared a non-performing asset on July 7, 2019, and later classified as fraud and willful default.
