The Enforcement Directorate (ED), Chennai Zonal Office, has successfully restored immovable properties worth ₹235 crore to Indian Bank in connection with a money laundering case involving M/s Saravana Stores (Gold Palace) and its partners.
Case Background
The investigation began after the Central Bureau of Investigation (CBI) registered a First Information Report (FIR) under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988. The case was based on a complaint filed by Indian Bank, which reported a fraudulent loss of approximately ₹312 crore.
Following this, the ED launched a money laundering investigation and attached immovable properties worth ₹274.75 crore. The agency later filed a Prosecution Complaint before the Special Court under the Prevention of Money Laundering Act (PMLA), 2002.
Legal Action and Court Ruling
Since Indian Bank was the aggrieved party, it filed an application under Section 8(8) of PMLA, 2002, seeking the restoration of the attached properties. The ED supported the application, arguing that the properties should be returned to the bank in the larger public interest to help recover its losses.
After reviewing the case, the Special Court ruled in favor of Indian Bank and ordered the restoration of immovable properties worth ₹235 crore.
Significance of the Ruling
This judgment reinforces the ED’s role in ensuring financial accountability and helping financial institutions recover losses from fraud. By restoring these assets, the ED has taken an important step toward protecting public funds and strengthening the banking system.
The case highlights the importance of strict enforcement of financial laws and the ED’s commitment to taking action against financial crimes, ensuring that fraudulently acquired assets are returned to their rightful owners.
