Union Bank wins Case against Enforcement Directorate, ED Moves Out of Rajokri Farmhouse in Delhi
A large farmhouse in Rajokri, South Delhi, once used by the Enforcement Directorate (ED) as its Gurugram zonal office, has now been sealed. A handwritten notice on the gate informs visitors that the office has moved to a new location near Sahara Mall on MG Road, Gurugram.
Although the ED signboards are still visible near the property, the agency had vacated the farmhouse nearly two months ago. This move puts an end to a complicated legal issue: the ED was using a high-value property, worth over Rs 100 crore, as its office and training centre—while the same property was under dispute in court.
Background: Who Owned the Rajokri Farmhouse?
The farmhouse originally belonged to Atul Bansal, a real estate businessman who is now deceased. In 2012, Bansal mortgaged the farmhouse and other assets with a group of banks to secure a loan of Rs 111 crore. This particular farmhouse was mortgaged with Union Bank of India by his company, Wisdom Realtors.
However, after the company failed to repay the loan, the bank took possession of the property in 2017.
Why Did the ED Step In?
In 2019, the Enforcement Directorate took action against Wisdom Realtors, accusing the company of money laundering. The ED then attached the farmhouse under the Prevention of Money Laundering Act (PMLA) and later obtained a court order to confiscate it.
Despite the ongoing legal battle, the ED converted the farmhouse into a functioning office. Spacious bedrooms were used by senior officers as cabins, the living room became a training hall, and even the swimming pool was turned into a storage space for old furniture. About 100 ED staff members operated from this property for nearly three years.
Union Bank of India’s Legal Challenge
While the ED was using the farmhouse, Union Bank of India challenged the confiscation in court. The bank argued that since the property was mortgaged to them and had not yet been auctioned or handed over, they still had the first legal claim on it.
According to the bank’s lawyer, Alok Kumar, “The property remains under confiscation, regardless of whether ED stays there or not. The matter is now in the hands of the PMLA court in Panchkula, and the bank must wait for a final decision.”
What Does the Law Say About Using Confiscated Property?
ED officials said they used the property under Section 9 of the PMLA, which allows the Central Government to take control of confiscated properties. A Gazette notification issued on September 12, 2023, gave ED’s Special Directors the authority to administer, manage, and dispose of such properties.
Now that the ED has vacated the Rajokri farmhouse, officers say it will be auctioned soon, but the final decision depends on ongoing court proceedings.
ED Still Using Other Confiscated Properties
Interestingly, the ED is still using two other confiscated properties as office spaces. One is located near the airport in Ranchi, and the other is in Worli, Mumbai. For now, the agency has no plans to vacate these locations.
