A Special Court under the Prevention of Money Laundering Act (PMLA) in Bengaluru has ordered the restitution of properties valued at ₹8.41 crore to victims of money laundering and other legitimate claimants in a case involving the Ajmera Group and its associates. The order, confirmed on 12 June, follows an investigation by the Enforcement Directorate (ED) into alleged large-scale investor fraud.

Background: How the Fraud Unfolded

The ED launched its investigation on the basis of multiple FIRs registered against the Managing Directors of the Ajmera Group, Bengaluru, under provisions of the Indian Penal Code, 1860. According to the allegations, entities linked to the group collected investments from members of the public by promising high rates of return. They allegedly cheated over 1,000 investors by neither paying the promised returns nor refunding the principal amounts invested.

The group reportedly collected ₹256.06 crore from the public illegally, with ₹72.9 crore remaining unpaid to investors at the time of the ED's intervention. Investigators found that substantial sums were diverted to the personal bank accounts of the group's directors and related individuals, who subsequently used the funds to purchase properties in their names.

What the ED Investigation Revealed

The ED probe, conducted on the basis of a charge sheet filed by the Central Crime Branch (CCB) of the Bengaluru Police, revealed that the accused had opened partnership firms and accepted deposits from the general public without obtaining any licence or permission from regulatory authorities — namely the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). The firms also operated without registering as a Non-Banking Financial Company (NBFC), a mandatory requirement under Indian law for entities accepting public deposits.

During the investigation, the ED issued a Provisional Attachment Order, attaching multiple assets belonging to various individuals connected to the case. A prosecution complaint was subsequently filed before the Special PMLA Court.

The Court Order and Restitution

Recognising the PMLA's core objective of returning proceeds of crime to their rightful owners, the ED submitted a no-objection application before the Special Court, seeking the release of attached properties in favour of genuine claimants and victims. The Special PMLA Court accepted the ED's submission and ordered the release of the attached immovable properties — valued at ₹8.41 crore — to the bona fide claimants.

The ED stated it remains committed to combating financial crimes and ensuring justice for victims of such offences. Notably, this restitution represents only a fraction of the ₹72.9 crore still owed to investors, underscoring the scale of the alleged fraud.

What Happens Next

The broader PMLA proceedings against the Ajmera Group and its associates continue before the Special Court. Affected investors who have not yet filed claims may need to approach the court to establish their status as legitimate claimants. The ED's investigation into any remaining unattached assets is expected to continue as the case progresses.