Mumbai, October 13, 2026: The special PMLA court has refused to release 1,741.69 acres of agricultural land adjacent to the proposed Vijaydurg Port in Sindhudurg to the Maharashtra Maritime Board for completing the development. The land was attached by the Enforcement Directorate during the money laundering probe into the HDIL-PMC Bank scam.
The court said that although the land was attached by the Enforcement Directorate in connection with the HDIL-PMC Bank scam, the attachment was challenged and the matter is now pending before the Appellate Authority under the Prevention of Money Laundering Act.
Board Seeks Release Of Land
The board had approached the special court for the release of the land, which was required for the operation of the port. The board claimed that the contract for the development was awarded to M/s Vijaydurg Ports Pvt Ltd (VPPL) in March 2008 under the BOOST method (Built, Own, Operate, Share and Transfer).
As per the agreement between VPPL and the applicant, VPPL was supposed to submit a Detailed Project Report (DPR), achieve financial closure and obtain other clearances for the project within 24 months.
The board had claimed that the project catered to the general welfare of the public at large by creating and developing maritime infrastructure. The proposed development activities would boost the maritime and economic development of the State of Maharashtra.
It intended to sell the land at a fair value for its further development. Hence, it prayed that the court release the land in the larger public interest. The agency too gave no objection to the release of the land.
ED Alleges Land Is Proceeds Of Crime
It is alleged that the land was acquired by M/s Privilege Hi-Tech Infrastructure Ltd (PHIL), a sister concern of Housing Development and Infrastructure Ltd (HDIL).
Besides, PHIL held a major shareholding in VPPL. VPPL did not complete the project for the development of Vijaydurg Port, causing heavy financial loss to the public exchequer.
It was further alleged that despite the termination of the project, VPPL’s owners/directors continued to maintain ownership of the said land through benami farmers in 39 transactions.
These farmers had executed irrevocable powers of attorney in favour of Sarang Wadhawan, one of the directors and promoters of the HDIL group of companies. Thus, the said property, being proceeds of crime, was attached by the ED.
It was further claimed that the attachment was confirmed by the Adjudicating Authority. Besides, the ED, after submitting its third prosecution complaint, had also sought confiscation of the land.
Court Notes Pending Appeal
The plea was, however, opposed by Rakesh Wadhawan’s lawyer, who contended that they had challenged the attachment of the land. The court observed that the attachment of the property had not yet reached finality.
The court said that although the provisional attachment was confirmed by the Adjudicating Authority under the PMLA, the matter was pending before the Appellate Authority. The court later pulled up the agency for not mentioning this in its reply, while instead giving no objection to the release.
PMLA Court Pulls Up ED Over Trial Delay
The special PMLA court pulled up the Enforcement Directorate for not proceeding with the trial in connection with the HDIL-PMC Bank case while refusing to release the attached property or order its confiscation pending the trial. The court said the ED was answerable for not commencing the trial.
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The court said that the properties could be released or confiscated only at the end of the trial, or after the death of the accused or for any other reason that prevented the trial from being conducted. The court said that, for this, there had to be a conclusion of the trial of an offence under the Act.
“It has to be reasonable ground as to why the trial has not commenced and what steps and efforts are made by the prosecution to proceed with the trial,” the court said.
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