In a significant development, the Directorate of Enforcement (ED), Delhi Zonal Office, has successfully restituted properties worth Rs. 274.60 crore to the rightful claimants and victims in the case of M/s PSL Limited.
This move marks a major victory in the fight against financial crimes and the pursuit of justice for those affected by money laundering.
The investigation was initiated by the ED following an FIR filed by the Central Bureau of Investigation (CBI), Banking Security and Fraud Cell (BS&FC), Mumbai. The FIR was registered based on a complaint from the Bank of Baroda, Mumbai, which accused M/s PSL Limited and its directors of criminal conspiracy, cheating, and criminal misconduct under Sections 120B read with 420 of the Indian Penal Code (IPC) and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988.
On 31st March 2019, the ED recorded an Enforcement Case Information Report (ECIR No. 06/MBZO-/2020) to investigate the case under the Prevention of Money Laundering Act (PMLA), 2002, since the offences under Sections 420 and 120B of the IPC are scheduled offences under the Act. The investigation revealed that the directors of M/s PSL Limited had misappropriated loan funds amounting to Rs. 274.60 crore, which were identified as Proceeds of Crime (POC).
In parallel, the National Company Law Tribunal (NCLT), Ahmedabad, initiated liquidation proceedings against M/s PSL Limited on 11th September 2020 and appointed a liquidator. During the investigation, the ED issued a Provisional Attachment Order on 2nd December 2021, securing assets worth Rs. 274.60 crore belonging to M/s PSL Limited.
On 23rd March 2023, the Hon’ble Delhi High Court directed the liquidator to proceed with the liquidation and place the proceeds amounting to Rs. 274.60 crore in a fixed deposit with a nationalized bank in the name of the Joint Director, ED. In compliance with this directive, the Fixed Deposit Receipts (FDRs) were received and held by the ED.
Considering the objective of the PMLA to restore Proceeds of Crime to legitimate claimants, the ED submitted a no-objection statement before the Hon’ble Delhi High Court on 27th February 2025 for the release of FDRs amounting to Rs. 274.60 crore, along with accrued interest, to the liquidator. The purpose of this restitution is to ensure that the affected parties receive their rightful dues.
Following the ED’s submission, the Hon’ble Delhi High Court ordered the restitution of the FDRs to the liquidator, who will now oversee the distribution of funds to the rightful claimants and victims. This decision underscores the ED’s commitment to ensuring that financial offenders are held accountable and that victims receive the justice they deserve.
The restitution marks a significant milestone in the ED’s ongoing efforts to combat financial crimes and uphold the integrity of India’s financial system. The agency reaffirmed its dedication to pursuing offenders and ensuring that ill-gotten gains are returned to their rightful owners.
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