Did the ED Return Assets Worth Rs 9.56 Crore to the Rightful Claimant?
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Synopsis
In a remarkable move, the ED has restored assets worth Rs 9.56 crore to the rightful claimant, showcasing its commitment to justice. This restitution follows an intricate investigation into fraudulent activities related to banking and loans, reinforcing the agency's dedication to combat money laundering and protect legitimate interests.
Key Takeaways
- The ED has returned assets worth Rs 9.56 crore.
- Ten immovable properties and nine movable assets were involved.
- The investigation stemmed from FIRs by the CBI.
- Fraudulent activities impacted the State Bank of India.
- The PMLA was utilized for the restitution process.
Kolkata, July 16 (NationPress) The Enforcement Directorate (ED), operating from its Kolkata Zonal Office, has successfully returned ten immovable properties and nine movable assets valued at approximately Rs 9.56 crore to the legitimate claimant, the official liquidator of Kaushik Global Logistics Ltd, who was appointed by the NCLT in Kolkata.
This restitution of seized assets was executed under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, following a directive from a special court, as confirmed by an official on Wednesday.
According to the ED, the investigation was sparked by FIRs lodged by the CBI, Kolkata. The findings revealed that KGLL, led by its directors Dhananjay Singh, Sanjay Singh, and Mritunjay Singh, engaged in fraudulent activities against the State Bank of India, securing credit facilities and term loans amounting to Rs 85.39 crore, which became a non-performing asset (NPA) as of June 30, 2013, with an outstanding balance of Rs 60.38 crore.
The ED reported that these loans were intended for acquiring new Volvo and Mercedes buses as well as for covering daily operational costs within the passenger transport sector.
However, it was found that the funds from these loans were misappropriated through a fictitious bank account associated with Volvo Buses India Pvt. Ltd., held at Dena Bank (now Bank of Baroda), among other accounts, through a series of intricate banking maneuvers aimed at creating fixed assets and servicing other loans.
The central agency noted that during the investigation, it attached proceeds of crime totaling Rs 10.86 crore by issuing two provisional attachments.
The ED emphasized that this significant development not only highlights its relentless drive to identify and seize proceeds of crime but also underscores its steadfast resolve to return the funds to the rightful claimants or victims of money laundering.
Point of View
This event underscores the ED's commitment to upholding the law and ensuring that financial malfeasance does not go unpunished. The rigorous investigation and restitution of assets reflect a transparent approach to handling cases of money laundering, which is essential for maintaining public trust in financial institutions and regulatory bodies.
NationPress
16/07/2025
Frequently Asked Questions
What prompted the investigation by the ED?
The ED's investigation was initiated based on FIRs filed by the CBI in Kolkata, which revealed fraudulent activities involving Kaushik Global Logistics Ltd.
How much money was involved in the fraudulent activities?
The fraudulent activities involved credit facilities and term loans amounting to Rs 85.39 crore, which eventually became a non-performing asset.
What is the Prevention of Money Laundering Act?
The Prevention of Money Laundering Act (PMLA) is a legislative framework in India aimed at combating money laundering and ensuring the confiscation of proceeds derived from unlawful activities.
Which properties were restituted by the ED?
The ED returned ten immovable properties and nine movable assets valued at approximately Rs 9.56 crore to the official liquidator of Kaushik Global Logistics Ltd.
What was the role of the NCLT in this case?
The National Company Law Tribunal (NCLT) appointed the official liquidator for Kaushik Global Logistics Ltd, overseeing the restitution process.
