Did ED Return Assets Valued at Rs 163.85 Crore to SBI in Rs 380 Crore Bank Fraud Case?
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Synopsis
In a significant turn of events, the ED has returned valuable assets to SBI linked to a major bank fraud case. This restitution highlights the ongoing battle against corporate fraud and the challenges banks face in recovering losses. Stay tuned for more insights into the implications of this case on the banking sector.
Key Takeaways
- ED returned Rs 163.85 crore worth assets to SBI.
- Involvement of multiple banks in the fraud case.
- Investigation revealed fund misappropriation by NSJPL.
- Legal proceedings are ongoing against NSJPL and its promoters.
- Restitution signifies progress in recovering losses for banks.
Chennai, Sep 15 (NationPress) The Chennai Zonal Office of the Enforcement Directorate (ED) has returned 27 immovable properties valued at Rs 163.85 crore to the State Bank of India (SBI) linked to the Rs 380 crore bank fraud involving Nathella Sampath Jewellery Private Limited (NSJPL).
The restitution was carried out following directives from the Special Court in Chennai under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002.
This case originated in March 2018 when the Central Bureau of Investigation (CBI) in Bengaluru lodged an FIR based on a complaint from SBI representing a consortium of three banks.
The consortium had provided loans amounting to Rs 380 crore to NSJPL.
The complaint alleged that the company misappropriated the funds for unauthorized purposes and failed to make repayments, leading to substantial losses for the lenders.
ED's investigations uncovered that the promoters of NSJPL maneuvered and layered the funds through various entities for personal enrichment.
In July 2018, the ED seized 37 immovable properties worth Rs 328.44 crore, categorizing them as the equivalent of the proceeds of crime.
A prosecution complaint was subsequently submitted to the PMLA Special Court in July 2019.
Charges were established in October 2024, and the trial is currently in progress.
During the hearings, SBI petitioned the Special Court for the restitution of 27 attached properties, asserting its primary right as a financial creditor under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
The ED supported SBI's motion, recognizing it as a victim of the fraud.
The Special Court, utilizing the provisions of Section 8(8) of PMLA, authorized the return of the assets.
Consequently, on September 12, 2025, the 27 properties located in Chennai and appraised at Rs 163.85 crore were officially restored to SBI.
This restitution signifies a critical advancement in recovering assets for banks casualties of corporate frauds, as the trial against NSJPL and its promoters proceeds.
Point of View
The restitution of these properties signifies a commitment to justice in the face of corporate fraud. The ED's actions highlight the importance of accountability and the need for effective measures to protect financial institutions and their stakeholders. As the trial against NSJPL continues, it is crucial to observe how these developments shape the landscape of corporate governance in India.
NationPress
15/09/2025
Frequently Asked Questions
What is the amount involved in the bank fraud case?
The total amount involved in the bank fraud case is Rs 380 crore.
How many properties were returned to SBI?
The Enforcement Directorate returned 27 immovable properties to SBI.
What law was invoked for the restitution of assets?
The restitution was carried out under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002.
When did the CBI register the FIR in this case?
The Central Bureau of Investigation registered the FIR in March 2018.
What was the role of the ED in this case?
The Enforcement Directorate conducted investigations and attached properties linked to the alleged fraud.
