New Delhi – The Enforcement Directorate (ED) has brought relief to more than 200 homebuyers by restoring properties worth approximately ₹175 crore. These individuals had been in a prolonged wait for over 12 years to gain possession of their dream homes. The assets, which include 354 flats, 17 commercial units, and two plots, are part of the Royal Rajvilas project in Udaipur, Rajasthan. Their current market value is estimated at ₹175 crore.
This development stems from a money laundering investigation concerning Bharat Bomb and other accused individuals, who allegedly defrauded Syndicate Bank of ₹1,267.79 crore between 2011 and 2016. In April 2019, the ED had attached properties worth ₹535 crore in connection with this case, including ₹83.51 crore in unsold inventory from Udaipur Entertainment World Private Limited (UEWPL).
Following multiple legal challenges and the company’s insolvency proceedings before the National Company Law Tribunal (NCLT), the ED’s attachment order was eventually vacated in February 2022. The ED was not initially a party in the NCLT proceedings, leading to complications. The matter escalated to the Rajasthan High Court, which ruled that the ED had been disadvantaged by not being impleaded. Subsequently, the new management of UEWPL approached the Supreme Court.
The Supreme Court directed both parties to seek a consensus to protect the interests of the genuine homebuyers. In response, the ED actively engaged with the resolution professional and the new management of UEWPL to identify all admitted homebuyers. After scrutinizing the details, the ED submitted a ‘No Objection Certificate’ to the Supreme Court for the restitution of attached properties for the benefit of these homebuyers.
The agency emphasized its proactive stance in finding a harmonious solution that upheld the objectives of the Prevention of Money Laundering Act (PMLA) while prioritizing the welfare of the 213 affected homebuyers. On October 10, the Supreme Court issued an order confirming the restitution of properties valued at approximately ₹175 crore to the successful resolution applicant of UEWPL, specifically for the benefit of innocent homebuyers.
This ruling marks the end of over 12 years of hardship for these homebuyers and concludes more than seven years of protracted litigation between UEWPL and the ED. The Supreme Court acknowledged the unique circumstances of the case, noting that the order should not set a precedent for future legal matters. The Court also commended the ED’s efforts, stating, “…we place on record our appreciation for the efforts made by the learned counsel for the parties and the DoE in restoring the attached properties to secure the interests of genuine and innocent home buyers.”.