New Delhi, April 21
Directorate of Enforcement (ED), Delhi has successfully restituted properties valued at Rs. 1200 crore (as per prevailing market rates) to victims in the case of M/s. REI Agro Ltd and others.
This restitution, executed under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, was made in accordance with the order dated passed by Special Court (PMLA), Saket.
This significant development not only underlines the ED’s relentless efforts to trace and attach Proceeds of Crime (PoC) but also reinforces its unwavering commitment to ensuring that the money is restored to the victims of money laundering.
ED initiated investigation on FIR registered by the CBI under various sections of the IPC, 1860 against M/s REI Agro Ltd, Sandeep Jhunjhunwala, Sanjay Jhunjhunwala, and others. M/s REI Agro Ltd. and its Directors fraudulently availed credit facilities from a consortium of banks, including UCO Bank’s Flagship Corporate Branch in Kolkata. Funds were then illicitly diverted for unauthorized purposes, causing significant losses to lenders from 2013 onwards.
During the course of its investigation under PMLA, the ED issued six Provisional Attachment Orders (PAOs) totaling approximately Rs.1256.56 Crore. It also filed one original Prosecution Complaint and three Supplementary complaints in connection with the case.
In parallel with these actions, a Corporate Insolvency Resolution Process was initiated against/s. REI Agro Ltd. by the National Company Law Tribunal (NCLT). Following complex legal proceedings involving multiple PAOs, the matter reached the Hon’ble Special Court (PMLA), where the Liquidator of REI Agro Ltd. and M/s VarsannaIspat Ltd. filed an application under sections 8(7) read with 8(8) of the PMLA, seeking restitution of the attached properties.
Crucially, ED, in line with its policy to restore the properties to victims of money laundering and legitimate claimants, submitted a No Objection in respect of the restitution. The Hon’ble Special Court (PMLA), Saket, thereby allowed the restitution, enabling the return of valuable assets to rightful claimants.
