Kochi, February 19 (NationPress) - In a significant development aimed at offering restitution to the victims of the Rs 2,000-crore Popular Finance scam, the Special Court for PMLA Cases in Ernakulam has directed the return of seized assets valued at Rs 65.07 crore to the Competent Authority under the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act).

The order issued on February 10, 2026, mandates that assets comprising movable properties worth Rs 33.20 crore and immovable properties valued at Rs 31.87 crore, which were previously attached by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002, be transferred for adjudication and equitable distribution among the depositors.

The ED issued provisional attachment orders in September and December 2021 as part of their investigation into the alleged money laundering associated with the scam.

The Special Court emphasized that the interests of the affected depositors, common to both laws, should take precedence, and that transferring these assets would facilitate a fair distribution.

Any objections from the accused parties will remain open for consideration by the BUDS Authority.

This announcement follows recent criticism from the Kerala High Court directed at the Competent Authority under the BUDS Act for delays in adhering to earlier court rulings regarding the Popular Finance case.

The High Court expressed alarm at the sluggish pace of asset management and restitution, especially with thousands of investors looking for relief.

Popular Finance, a non-banking finance institution based in Ranni, Pathanamthitta district, has been operational since 1965, with branches spread across Kerala, Karnataka, Haryana, Maharashtra, and Tamil Nadu.

Investigations have indicated that approximately 30,000 investors were reportedly defrauded out of nearly Rs 2,000 crore through schemes that promised returns of up to 12 percent per annum.

Due to the enormous scale and multi-state implications, the investigation has been handed over to the Central Bureau of Investigation (CBI).

Those apprehended in August 2021 include managing director Thomas Daniel and Rinu Mariam Thomas.

Additional family members were also detained, including two daughters caught at Delhi airport while allegedly trying to flee to Australia.

As legal proceedings advance into early 2026, this restitution order signifies a key milestone in the protracted effort to secure financial recovery for the thousands of deceived depositors.