Mumbai, Nov 28: The Enforcement Directorate (ED), Mumbai Zonal Office, has facilitated the release of properties attached under the Prevention of Money Laundering Act (PMLA) to the legitimate claimant in the money laundering probe involving Cox & Kings Ltd (CKL), its promoters, and associated entities. The agency has identified approximately Rs 4,100 crore as the total proceeds of crime in the CKL fraud.
According to the agency, investigations revealed that Rs 1,066 crore from the proceeds of crime (PoC) had been siphoned from CKL to V Hotels Ltd, of which assets worth Rs 520.80 crore were provisionally attached under PMLA by ED, an attachment later confirmed by the Adjudicating Authority (AA).
Later on, M/s V Hotels Ltd underwent the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) before the NCLT, following which Macrotech Developers (MDL, now Lodha Developers Ltd) was approved as the Successful Resolution Applicant (SRA) vide order dated April 26, 2024, and deposited the required funds as part of the resolution plan.
Based on the NCLT order, the Bombay High Court quashed the attachment made by the ED, prompting the Directorate to file a Special Leave Petition before the Supreme Court. The apex court, vide its order dated July 2, 2025, directed Lodha Developers Ltd to deposit Rs 520.80 crore in lieu of the attached properties. The amount was subsequently placed in an interest-bearing fixed deposit with SBI, representing the substituted value of the attached properties.
During proceedings before the Supreme Court, the ED gave its consent for restitution of the deposit to the SRA, M/s Lodha Developers, which was approved vide order dated November 11. The restitution was granted under Section 8(8) of the PMLA, 2002, and Section 32A of the IBC, with the clarification that the approval was contingent on the SRA having no connection with the former CKL management or the beneficiaries of the proceeds of crime.
Also Watch:
The Supreme Court has ordered restoration of the Rs 520.80 crore deposit, along with accumulated interest, to the SRA. The court also appreciated the ED’s efforts, noting: “We place on record our appreciation for the earnest efforts made by the officers of the Directorate of Enforcement in restoring the attached properties to secure the interests of justice.”
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
