How Did ED Restore Assets Worth Rs 3.82 Crore to Karnataka Waqf Board?

Bengaluru, July 8 (NationPress) In a landmark action to restore the Proceeds of Crime (POC) to those entitled, the Enforcement Directorate (ED), Bengaluru Zonal Office, has successfully returned properties worth Rs 3.82 crore to the Karnataka Waqf Board as part of a money laundering probe.

The funds from the Waqf Board, which were intended for fixed deposits, were misappropriated for the purchase of a Mercedes-Benz vehicle, with additional funds diverted to a trading corporation.

As per an official announcement from the ED on Tuesday, the investigation was triggered by an FIR lodged against two officials from Vijaya Bank and Syed Siraj Ahmed, a First Division Assistant at the Waqf Board.

In this matter, the Waqf Board issued two cheques totaling Rs 4,00,45,465 to open fixed deposit accounts at Vijaya Bank. However, rather than being deposited, the funds were unlawfully redirected to non-existent entities, according to the ED.

Additionally, Rs 4 crore was sent to M/s. Verkeys Realities Pvt Ltd, which then utilized Rs 1.10 crore to acquire a Mercedes vehicle from Ghatge Motors Pvt Ltd. Furthermore, Rs 2,72,74,444 was returned to the account of M/s. Ajay Sharma Trading Corporation, the ED highlighted.

Upon revealing these illicit financial activities and the legitimate money trail of the Proceeds of Crime (POC), the ED issued a Provisional Attachment Order (PAO) totaling Rs 3,82,74,444.

On March 31, 2017, the ED submitted a Prosecution Complaint (PC) to the Special PMLA Court in Bengaluru against six individuals and entities, including M/s. Verkeys Realities Pvt Ltd, the statement elaborated.

In accordance with the PMLA and its primary goal of ensuring the return of POC to the rightful victims, the ED raised no objections when the Additional Sessions Judge deliberated on the release of funds to the Karnataka State Wakf Board—the legitimate claimant in this instance, the ED mentioned.

On July 1, 2025, in furtherance of its pursuit of justice, the ED facilitated the return of the complete amount. A banker’s cheque of Rs 3,82,74,444 was presented to Jeelani H. Mokashi, CEO (Additional Charge), of the Karnataka State Wakf Board, the ED reported.

This action marks a significant advancement in the ED's continuous efforts to recover misappropriated funds for those who have suffered losses, the ED remarked.

This release highlights the ED's commitment to delivering justice for victims of financial crimes. The ED remains steadfast in its mission to combat money laundering and ensure that the Proceeds of Crime are returned to their rightful proprietors, the ED concluded.