Has the SC Commended ED's Role in Restoring Flats to Homebuyers in the Syndicate Bank Fraud Case?
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Synopsis
The Supreme Court has recognized the Enforcement Directorate's commendable work in returning properties to innocent homebuyers affected by a ₹1,267.79 crore fraud involving the Syndicate Bank. This case highlights the intricate web of fraudulent activities that deprived many of their rightful homes.
Key Takeaways
- The ED has been praised for its role in restoring properties to innocent homebuyers.
- The fraud amounts to ₹1,267.79 crore, affecting many individuals.
- The case involves complex financial dealings and fraudulent activities.
- The Supreme Court's acknowledgment highlights the importance of accountability.
- Legal battles are ongoing to ensure justice for affected parties.
New Delhi, Oct 14 (NationPress) The Enforcement Directorate (ED) has been commended by the Supreme Court for its ongoing and effective efforts in returning properties to innocent homebuyers caught in a massive ₹1,267.79 crore fraud case linked to a prominent bank, which resulted in the indefinite delay of their housing units.
This case involves the Syndicate Bank fraud from 2011 to 2016, where Bharat Bomb and his associates defrauded the bank of ₹1,267.79 crore. The primary accused, Bharat Bomb, utilized the proceeds of these crimes to acquire Royal Raj Vilas and its developer, M/s Udaipur World Entertainment Pvt. Ltd, creating a convoluted network of illicit financial transactions that obstructed homebuyers from obtaining their flats.
The ED initiated its investigation in 2016, seizing the properties of the accused and engaging in a legal struggle to penalize the fraudulent developers while restoring the rights of the affected homebuyers.
The agency's inquiry into financial misconduct and money laundering under the Prevention of Money Laundering Act (PMLA) 2002 garnered accolades from the Apex Court.
The case originated from FIRs filed by the Central Bureau of Investigation (CBI) against Bharat Bomb and others. According to their chargesheet, the accused misappropriated ₹1,267.79 crore through companies and firms registered under their names or those of family members.
The ED commenced its investigation into the bank fraud on June 11, 2016, under the PMLA, 2002, and issued orders to attach a total of 365 unsold flats/units, 17 commercial units, and two plots.
M/s Udaipur World Entertainment Pvt. Ltd was admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT) Mumbai on April 16, 2021, following a petition by homebuyers under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016.
In 2022, the NCLT approved the company’s resolution plan and lifted the ED’s attachment order, leading to a jurisdictional dispute.
The ED argued that the NCLT lacked the power to annul an order under Section 8 of the PMLA, 2002.
In a ruling dated October 10, 2025, the Apex Court praised the ED for its efforts in "restoring the attached properties and protecting the interests of genuine and innocent homebuyers."
Point of View
I believe that the Enforcement Directorate's persistent efforts in this case demonstrate a commitment to justice that resonates with the principles of accountability and integrity. The Supreme Court's acknowledgment reinforces the importance of safeguarding the rights of innocent victims in financial frauds, a stance that aligns with our national interests.
NationPress
14/10/2025
Frequently Asked Questions
What is the Syndicate Bank fraud case?
The Syndicate Bank fraud case involves a total fraud of ₹1,267.79 crore committed by Bharat Bomb and his associates between 2011 and 2016, affecting numerous homebuyers.
What actions has the ED taken in this case?
The Enforcement Directorate has investigated the fraud, attached properties of the accused, and worked to restore rights to the affected homebuyers while seeking legal penalties against the fraudsters.
How did the Supreme Court respond to the ED's actions?
The Supreme Court commended the Enforcement Directorate for its dedicated efforts to restore properties to innocent homebuyers and secure their interests.
What is the role of the NCLT in this case?
The National Company Law Tribunal admitted M/s Udaipur World Entertainment Pvt. Ltd into the Corporate Insolvency Resolution Process and approved its resolution plan, which led to disputes regarding the ED's attachment orders.
What does PMLA stand for?
PMLA stands for the Prevention of Money Laundering Act, a law enacted to prevent money laundering and impose penalties on offenders.
