In a major step towards justice, the Enforcement Directorate (ED), Delhi Zonal Office, has successfully returned property worth ₹10 crore to the victims of a money laundering case. The case involves M/s Priyanka Overseas Pvt Ltd & Others and was being investigated by the ED.
How the Case Started
The investigation began after the Central Bureau of Investigation (CBI), New Delhi, registered an FIR based on a complaint from the State Trading Corporation (STC). The complaint was against Raj Kumar Jain and some STC officials, who were accused of committing fraud under the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988.
ED’s investigation found that Raj Kumar Jain worked with STC officials and others to illegally get financial help for M/s Priyanka Overseas Ltd. for the export of wheat and rice. This violated STC’s rules and caused a ₹52 crore loss to the corporation.
ED Takes Action
To recover the lost money, the ED issued a Provisional Attachment Order and seized 50% of a property in Dwarka, New Delhi. The Adjudicating Authority later confirmed this attachment on September 12, 2018.
The ED also filed a charge sheet against Raj Kumar Jain and others on December 10, 2018, and the Special Court (PMLA) took official notice of the case. During the investigation, it was found that the attached property was mortgaged to City Union Bank for a loan of ₹9 crore taken by Raj Kumar Jain and others.
Court Orders Return of Property
Since the property was linked to City Union Bank, the bank filed a case with the Delhi High Court, requesting its return. On December 18, 2024, the Delhi High Court ordered the ED to restore the property to the bank.
Following this, City Union Bank filed an application under Section 8(8) of PMLA before the Special Court (PMLA). On March 10, 2025, the ED agreed to release the property, considering the law’s aim to return seized assets to their rightful owners. The Special Court then approved the return of the property to City Union Bank.
Why This Is Important
This decision is an important step in ensuring that victims of financial fraud get justice. The ED continues its efforts to fight money laundering and return stolen assets to their rightful owners. This case highlights the ED’s commitment to maintaining financial integrity and punishing economic crimes.
