Will Court Restore Rs 952 Crore in the IL&FS Case?
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Synopsis
A pivotal ruling in the IL&FS money laundering case sees the Mumbai Special Court restore Rs 952 crore in assets to Nuvoco Vistas, enabling them to proceed with their resolution plan. How does this impact financial institutions and stakeholders involved?
Key Takeaways
- Special Court in Mumbai restores Rs 952 crore
- Nuvoco Vistas Corporation Ltd is the beneficiary
- ED's no-objection facilitates asset restoration
- Resolution plan approved under Insolvency and Bankruptcy Code
- Significant for financial recovery and stakeholders
Mumbai, June 28 (NationPress) In a significant turn of events in the IL&FS money laundering investigation, a Special Court operating under the Prevention of Money Laundering Act (PMLA) in Mumbai has mandated the restoration of immovable assets valued at Rs 952 crore to Nuvoco Vistas Corporation Ltd.
The ruling, dated June 25, comes after a no-objection statement presented by the Enforcement Directorate (ED), permitting the company to advance with its resolution plan for Vadraj Cement Ltd, as disclosed by the ED on Saturday.
Previously, in January 2020, the ED had attached the Surat-based plant of Vadraj Cement following investigations that uncovered fraudulent loan acquisitions totalling Rs 952 crore from IL&FS Financial Services Ltd. These loans were later categorized as non-performing assets. The attachment was affirmed by the Adjudicating Authority in August 2021, leading to a prosecution complaint that sought confiscation.
Nuvoco Vistas, a subsidiary of the Nirma Group, successfully emerged as the resolution applicant under the Insolvency and Bankruptcy Code. Its resolution plan, which received approval from the National Company Law Tribunal (NCLT) on April 1, 2025, entails a payment of Rs 1,706 crore to financial creditors in return for the acquisition of Vadraj Cement. Subsequently, the company submitted an application to the Special Court for the restoration of the attached assets to enable the execution of its resolution plan.
In light of the PMLA's goal to revert proceeds of crime to rightful claimants, the ED indicated no objection to releasing the attached assets. The court, agreeing with this assessment, ordered the restoration of the property in accordance with Sections 8(7) and 8(8) of the PMLA, alongside Rule 3A of the PML (Restoration of Property) Rules, 2016.
The court also mandated Nuvoco Vistas to offer an undertaking to return or restore the property or its equivalent value if necessary in the future. The ED has been tasked with preparing a comprehensive inventory before transferring possession, as stated. This ruling is viewed as a crucial step towards enabling financial institutions to reclaim dues and ensuring that productive assets are returned to legitimate stakeholders through lawful channels.
Point of View
This ruling serves as a crucial reminder of the legal mechanisms in place to combat financial crimes while ensuring that legitimate businesses can recover and thrive. It underscores the importance of the rule of law in maintaining financial stability.
NationPress
28/06/2025
Frequently Asked Questions
What is the IL&FS money laundering case?
The IL&FS money laundering case involves allegations of fraudulent loan acquisitions and financial misconduct linked to the IL&FS Financial Services Ltd.
What assets were restored?
The court ordered the restoration of immovable assets valued at Rs 952 crore to Nuvoco Vistas Corporation Ltd.
Who is Nuvoco Vistas Corporation Ltd?
Nuvoco Vistas is a subsidiary of the Nirma Group and was involved in acquiring Vadraj Cement through a resolution plan.
What does the PMLA stand for?
PMLA stands for the Prevention of Money Laundering Act, a significant legal framework in India aimed at combating money laundering.
What is the significance of this court ruling?
This ruling is critical as it allows Nuvoco Vistas to implement its resolution plan, facilitating recovery for financial creditors and returning assets to legitimate stakeholders.
