Mumbai: The Enforcement Directorate (ED) has restituted immovable properties worth Rs 30.02 crore to Indian Bank in connection with a money laundering probe linked to Signet Products Pvt Ltd, Aurangabad. The restitution follows an order passed by the Special PMLA Court in Mumbai on July 19, agency officials said on Wednesday.
CBI FIR Triggered ED Probe Into ₹72.99 Crore Bank Fraud
ED initiated investigation on the basis of an FIR registered by CBI, ACB, Pune. "ED investigation revealed that the accused persons, along with unknown public servants and others, entered into a criminal conspiracy. Through acts of forgery, use of false documents as genuine, and criminal misconduct, they cheated Andhra Bank, Andheri Branch, Mumbai, causing a wrongful loss of Rs 72.99 crore to the bank and a corresponding wrongful gain to themselves in connection with the illegal discounting of bills," said an ED official.
Laundered Money Used to Buy Properties, Clear Loans
"They used this money to purchase various properties. Additionally, they made payments to other banks to remove the existing charges or claims those banks had on the said properties. These properties were attached under Section 5 of the Prevention of Money Laundering Act (PMLA), and a prosecution complaint was filed before the Special Court on August 19, 2023. The trial is currently underway.," the official added.
ED Supported Bank's Plea for Asset Recovery
In the meantime, the Indian Bank, the claimant, with whom the illegally acquired assets were mortgaged had filed an application before the Special PMLA Court in Mumbai seeking restitution. The ED gave its consent to the plea, following which the court passed an order on July 19, allowing the return of the said properties to the bank.
ED Cites Larger Goal of Returning Assets to Rightful Claimants
"With the larger objective of restoration of assets to rightful claimants, ED took steps to expedite the process resulting in the restitution," officials said.
