Mumbai, Nov 28 (NationPress) In the ongoing money laundering investigation involving Cox & Kings Ltd. (CKL), the Enforcement Directorate has successfully facilitated the return of properties valued at Rs 520.80 crore to a Legitimate Claimant, as confirmed by an official on Friday.

The Directorate of Enforcement (ED) based in Mumbai reported that the total Proceeds of Crime linked to CKL's fraudulent activities are estimated to be around Rs 4,100 crore.

This case encompasses Cox & Kings Ltd. (CKL), its promoters, and associated parties, as stated by the official.

During the investigation, it was uncovered that Rs 1,066 crore from the Proceeds of Crime was misappropriated to V Hotels Ltd.. Of this amount, Rs 520.80 crore was previously attached under the Prevention of Money Laundering Act (PMLA), 2002, with the Adjudicating Authority confirming the attachment.

The ED further explained that V Hotels Ltd. entered into the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC), with Macrotech Developers Ltd. designated as the Successful Resolution Applicant (SRA).

“Following this, in adherence to a Supreme Court directive (stemming from a Special Leave Petition lodged by the Directorate), the SRA deposited Rs 520.80 crore into an interest-bearing fixed deposit with SBI, which represents the substituted value of the attached properties,” the statement elaborated.

In the context of proceedings before the Supreme Court, the ED, in consideration of Section 8(8) of PMLA and Section 32A of IBC, and in line with previous positions in similar cases, expressed its agreement for the repayment of the deposited amount to the SRA, conditional on the SRA’s lack of ties to the former management or beneficiaries of the Proceeds of Crime, as indicated in the statement.

The Supreme Court has mandated the restoration of the Rs 520.80 crore deposit (including accrued interest) to the SRA under Section 8(8), PMLA.

Significantly, the Supreme Court has explicitly acknowledged: “We commend the diligent efforts of the officers of the Directorate of Enforcement in returning the attached properties to uphold the interests of justice.”

The Directorate remains steadfast in its commitment to securing the confiscation of Proceeds of Crime and rigorously prosecuting individuals engaged in money laundering activities while ensuring the restitution of assets to rightful claimants in line with Section 8(8) of PMLA.