ED accomplishes properties restitution process in Musaddilal money laundering case
SBI files restitution applications based on ED's initiative
Hyderabad: The Hyderabad zonal office of Directorate of Enforcement (ED) has successfully accomplished the process of restitution of properties worth Rs.79.20 crore to the State Bank of India (SBI) in connection with money laundering case against Musaddilal Jewellers Private Limited and others.
Based on ED’s initiative, the SBI filed restitution applications under Section 8(8) of the Prevention of Money Laundering Act (PMLA)- 2002 before the Special PMLA Court of the Metropolitan Sessions Judge in Nampally for release of moveable properties seized by the ED, Hyderabad zonal office.
In a statement, the ED urged the court to release the seized amount to the rightful claimant - SBI in public interest. The court vide orders dated January 6, 2025 and February 3, 2025 allowed the said petitions and ordered for release of moveable properties in the form of jewellery worth Rs.79.20 crore being closing stock seized from commercial premises of Musaddilal Jewellers Private Limited.
The ED has been investigating a money laundering case against Musaddilal Jewellers and others who had deposited more than Rs.111 crore in demonetized currency immediately after the demonetization of high value notes was declared. Its’ investigation revealed that demonetized currency was deposited under the pretext of receipt of advance money from around 6000 fake customers by creating fake invoices of less than Rs.2 lakh each.
The ED investigation also revealed that the said amount was deposited in various bank accounts and was utilized towards purchase of gold bullion which was further sold. In this process, further Proceeds of Crime (POC) of Rs.28 crore were derived from such sale.
The investigation also revealed that SBI had extended various credit facilities to Musaddilal Jewellers, which remained unpaid and the loan accounts turned NPA in July 2019; that Musaddilal Jewellers had outstanding dues to SBI of over Rs. 120 crore as on March 14, 2023.
The ED had earlier seized movable properties worth Rs.83.30 crore during searches conducted on January 12, 2017 and April 15, 2019. Provisional attachment of movable and immovable properties to the tune of Rs.130.57 crore, including movable properties worth Rs.83.30 crore seized during search operations, was also done by ED during the course of investigation.
This marks a significant step in ED’s ongoing efforts to restore properties to their rightful claimants and to ensure that POC are returned to those affected. The ED continues to uphold its commitment to combating financial crimes and ensuring justice for victims of such crimes.
What's Your Reaction?
