Usher Agro Fraud Case: PMLA Court Orders Restoration Of ₹22.40-Crore ED-Attached Properties To Legitimate Claimants

Mumbai, July 25, 2026: A special court under the Prevention of Money Laundering Act (PMLA) in Mumbai has ordered the restoration of immovable properties worth Rs 22.40 crore, attached by the Enforcement Directorate (ED), to bona fide legitimate claimants in connection with the alleged Rs 916-crore bank fraud involving Usher Agro Ltd.

Court Allows Restoration

In an order dated July 23, the Additional Sessions Judge, designated as the Special Court under the PMLA, allowed the restitution of the attached properties after the ED informed the court that it had no objection to their release in favour of the legitimate claimants.

The ED had initiated a money laundering investigation against Vinod Kumar Chaturvedi, Manoj Pathak, and others, alleging that Usher Agro Ltd., owned and controlled by the two promoters, defrauded a consortium of banks of approximately Rs 916 crore by systematically siphoning off loan funds through a network of shell companies. The agency alleged that the promoters also diverted funds through related group entities.

During the investigation, the ED provisionally attached immovable properties worth Rs 22.40 crore in 2021 under the Prevention of Money Laundering Act. The attachment was subsequently confirmed by the Adjudicating Authority, and the agency filed a prosecution complaint before the special court seeking confiscation of the assets as proceeds of crime.

Liquidator Moves Court

Meanwhile, corporate insolvency resolution proceedings were initiated against Usher Eco Power Ltd. before the National Company Law Tribunal (NCLT), Mumbai. After the resolution process failed, the company entered liquidation, following which the liquidator approached the PMLA court seeking restoration of the attached properties.

The ED told the court that the PMLA provides for the restoration of proceeds of crime to bona fide legitimate claimants and, accordingly, raised no objection to the release of the attached assets.

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ED Raises No Objection

Accepting the ED's submission, the special court ordered that the properties be restored to the legitimate claimants.

The ED said the order marks an important step towards ensuring that assets identified as proceeds of crime are ultimately returned to those lawfully entitled to them, while the money laundering prosecution in the case continues in accordance with the law.

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