ED Returns Rs. 274.60 Crore to Money Laundering Victims
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Synopsis
The ED in New Delhi has returned Rs. 274.60 crore to victims of money laundering linked to M/s PSL Limited, following a thorough investigation and court orders. This restitution aligns with the ED's commitment to restoring the Proceeds of Crime to legitimate claimants.
Key Takeaways
- ED has returned Rs. 274.60 crore to victims.
- Investigation initiated based on CBI FIR.
- M/s PSL Limited's directors misappropriated funds.
- Liquidation proceedings were instituted by NCLT.
- Delhi High Court facilitated the restitution.
New Delhi, Feb 28 (NationPress) In a significant move aimed at returning the Proceeds of Crime (POC) to their rightful owners, the Directorate of Enforcement (ED), Delhi Zonal Office, has successfully restored assets valued at Rs. 274.60 crore to victims and legitimate claimants in the investigation concerning M/s PSL Limited.
The ED commenced this investigation after an FIR was lodged by the CBI (BS&FC), Mumbai, following a complaint from the Bank of Baroda, Mumbai. The complaint accused M/s PSL Limited and its directors of criminal conspiracy, cheating, and misconduct under Sections 120B and 420 of the IPC, as well as Section 13(2) and Section 13(1)(d) of the Prevention of Corruption Act, 1988.
In response, the ED began its investigation on March 31, 2019, registering an ECIR, since the alleged offences under Sections 420 and 120B of the IPC are recognized as scheduled offences under the Prevention of Money Laundering Act (PMLA). The investigation revealed that the directors of M/s PSL Limited had misappropriated loan funds amounting to Rs. 274.60 crore, which were identified as POC.
Simultaneously, on September 11, 2020, the National Company Law Tribunal (NCLT), Ahmedabad, initiated liquidation proceedings against M/s PSL Limited and appointed a liquidator.
During the course of the investigation, the ED issued a Provisional Attachment Order on December 2, 2021, seizing assets valued at Rs. 274.60 crore belonging to M/s PSL Limited. Following a directive from the Delhi High Court on March 23, 2023, the liquidator was ordered to deposit the liquidation proceeds, totaling Rs. 274.60 crore, into a fixed deposit with a nationalised bank in the name of the Joint Director, ED. As per the court's ruling, the fixed deposits have been received and are now in the possession of the ED.
In line with the objectives of the PMLA to restore the POC to bona fide and legitimate claimants, the ED on Feb 27 filed a no-objection application before the Delhi High Court for the release of the fixed deposits along with their accrued interest to the liquidator. This would facilitate the further restitution of these assets to the rightful victims and claimants of the money laundering offence.
Following the ED's application, the Delhi High Court issued an order to return the fixed deposits amounting to Rs. 274.60 crore, including the accrued interest, to the liquidator for distribution to the legitimate claimants and victims of the offence.
