Did the ED Restore Rs 55 Crore from the Rs 250 Crore Bank Fraud?
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Synopsis
In a landmark decision, the ED returned Rs 55 crore of assets in the Rs 250 crore bank fraud case involving Era Infra Engineering. This restoration signals a pivotal moment for the resolution process and offers hope for the rightful owners of the assets.
Key Takeaways
- The Enforcement Directorate has restored Rs 55 crore in assets linked to the bank fraud case.
- Era Infra Engineering is under new management after a successful resolution process.
- The company had fraudulently diverted loans from UCO Bank for unauthorized purposes.
- This case highlights the importance of financial accountability in the infrastructure sector.
- The ED's actions are a critical step in addressing corporate fraud.
New Delhi, July 11 (NationPress) In a significant turn of events concerning the Rs 250 crore bank fraud case involving an infrastructure firm, the Enforcement Directorate (ED) has returned properties valued at Rs 55.85 crore, which were previously attached as Proceeds of Crime (POC), to the legitimate claimants, an official reported on Friday.
The POC were returned to the successful resolution applicant, who assumed management of Era Infra Engineering Limited during the resolution process. The company, along with Hem Singh Bharana (an official) and others, was implicated in fraudulent activities back in 2018.
Among the assets restored are two tunnel boring machines and bank account balances belonging to the firm, stated the ED.
Era Infra Engineering specializes in a wide range of construction projects including airports, power installations, institutional and industrial complexes, multiplexes, and residential buildings for public sector undertakings (PSUs), private enterprises, and projects supported by the Asian Development Bank.
The company had secured loans totaling Rs 650 crore from UCO Bank but unlawfully diverted part of these funds to affiliated firms.
It was also revealed that the loan was used for purposes outside the agreed terms, leading the ED to declare the account a non-performing asset (NPA) on July 7, 2013.
The ED had issued three Provisional Attachment Orders on October 7, 2019, July 8, 2020, and August 5, 2020, attaching not only the tunnel boring machines and bank balances but also other movable and immovable assets.
A Prosecution Complaint was subsequently filed on March 12, 2021, seeking the confiscation of these properties.
The ED launched an investigation based on an FIR lodged by the Central Bureau of Investigation (CBI) on April 12, 2018, against Era Infra Engineering Limited, Bharana, and others.
The company and its officials faced charges related to cheating, conspiracy, forgery, and utilizing forged documents, as well as violations under the Prevention of Corruption Act for executing a bank fraud amounting to Rs 250.70 crore.
As part of a resolution process, another firm, SA Infrastructure Consultants Private Limited, was designated as the Successful Resolution Applicant by the National Company Law Tribunal (NCLT) on June 11, 2024.
The new management of Era Infra Engineering Limited filed a plea with the Special Court seeking the restoration of the attached assets.
The court ordered the restoration of the properties worth Rs 55.85 crore following the ED's agreement.
Point of View
This case underscores the ongoing challenges in managing corporate governance and financial integrity. The ED's actions reflect a commitment to accountability in financial practices, serving as a reminder of the vigilance required to combat fraud in the infrastructure sector.
NationPress
16/07/2025
Frequently Asked Questions
What is the Rs 250 crore bank fraud case about?
The Rs 250 crore bank fraud case involves the misappropriation of funds by Era Infra Engineering, which fraudulently diverted loans obtained from UCO Bank for unauthorized purposes.
Who restored the Rs 55 crore properties?
The Enforcement Directorate (ED) restored the properties, which were initially attached as Proceeds of Crime, to the rightful claimants.
What assets were restored by the ED?
The restored assets include two tunnel boring machines and bank account balances belonging to Era Infra Engineering.
What charges were filed against Era Infra Engineering?
Charges against Era Infra Engineering include cheating, conspiracy, forgery, and violations under the Prevention of Corruption Act.
When was the investigation into the case initiated?
The investigation was initiated by the ED based on an FIR filed by the CBI on April 12, 2018.
