New Delhi, Jan 17 (NationPress) The Enforcement Directorate (ED), Mumbai Zone, has returned immovable properties valued at Rs 289.54 crore to the Competent Authority, MPID, as appointed by the Government of Maharashtra in the case concerning M/s Pen Co-operative Urban Bank Ltd, an official reported on Friday.

A statement indicated that the assets had been provisionally attached by the ED under Section 5 of the Prevention of Money Laundering Act (PMLA), 2002 due to the former office bearers cheating the banks and misappropriating bank funds for personal investments.

The investigation commenced following an FIR filed by the Pen Police Station, District Raigad, Maharashtra. The Law Enforcement Agency (LEA) alleged in its chargesheet that the bank's office bearers engaged in a criminal conspiracy with the bank’s then Auditors, intentionally manipulating the bank’s financial records and fraudulently reporting profits, which led to a loss of Rs. 651.35 Crore for the bank.

Investigations by the ED uncovered that the proceeds arising from the crimes of forgery and cheating were funneled through fictitious cash credit accounts established in the bank, utilizing the services of cheque discounters operating in the market.

The statement further noted that part of the Proceeds of Crime (POC) was used to acquire immovable properties at various locations in the Raigad District of Maharashtra, registered under the names of third parties (known as Benami properties).

"These Benami properties, spanning 70.9 acres and valued at Rs. 25.20 Crore, were attached under Section 5 of PMLA on 26.05.2014 and 03.12.2014. Moreover, a Prosecution Complaint dated 20.06.2018 has been filed in this case before the Hon’ble Special Court, PMLA, and the trial is currently ongoing," the statement read.

"Meanwhile, a Criminal Writ Petition was filed by a depositor of Pen Urban Cooperative Bank Ltd before the Hon’ble Bombay High Court, requesting the release of the properties attached under the PMLA. The Hon’ble Bombay High Court, via an order dated 07.10.2016, instructed the ED to transfer the properties to MPID. Against this order, the ED submitted a Special Leave Petition (SLP) before the Supreme Court on 03.11.2017, which issued a stay on the Hon’ble Bombay High Court’s order. Subsequently, MPID authorities filed an application under Section 8(8) of PMLA on 01.02.2019 before the Hon’ble Special Court (PMLA), Mumbai, to confiscate the attached property for restitution to MPID," it further stated.

Pen Co-operative Urban Bank Ltd had around 2 lakh depositors and 42,000 shareholders who suffered losses of their hard-earned savings. To safeguard the interests of depositors amidst ongoing restitution efforts, the ED adopted a practical approach and opted to withdraw the SLP before the Supreme Court.

"As a result, an affidavit was submitted to the apex court, which was approved by an order dated 13.12.2024, leading to the withdrawal of the SLP," the statement noted.

It added: "Following this, the ED filed an affidavit before the Hon’ble Special Court (PMLA), Mumbai, showing readiness to return the properties as per the Hon’ble High Court order from 07.10.2016. By an order dated 14.01.2025, the Hon’ble Special Court (PMLA) granted the ED’s request, authorizing the restoration of 29 immovable properties currently appraised at Rs. 289.54 Crore to the Competent Authority under the MPID Act.