New Delhi: The Enforcement Directorate (ED) has successfully restituted a substantial amount of unsold property, including 354 flats and 17 commercial units in the Royal Rajvilas project in Udaipur. Valued at approximately ₹175 crore, these assets have been returned to the resolution applicant of Udaipur Entertainment World Private Limited (UEWPL), a development that has earned the commendation of the Supreme Court.
This action is expected to bring immense relief to around 213 homebuyers who had invested in these units and endured a wait of over 12 years for possession.
The ED initiated a money laundering investigation in 2019, stemming from FIRs filed by the CBI. The case involved allegations against an Udaipur-based chartered accountant and his associates who purportedly defrauded Syndicate Bank (now Canara Bank) of over ₹1,267 crore between 2011 and 2016 through fraudulent cheque discounting and loan schemes. The proceeds from this bank fraud were allegedly diverted into the Royal Rajvilas project.
During its investigation, the ED attached properties worth ₹535 crore, which included the unsold inventory from UEWPL, under the Prevention of Money Laundering Act (PMLA).
UEWPL was admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Mumbai, following a petition from a group of homebuyers. Subsequently, the NCLT approved UEWPL’s resolution plan in February 2022, also vacating the ED’s attached properties.
The matter eventually reached the Supreme Court. In a recent order on October 10, the apex court expressed its appreciation for the ED’s role in restoring the attached properties to the homebuyers.
“We place on record our appreciation for the efforts made by the learned counsel for the parties and the ED in restoring the attached properties to secure the interests of genuine and innocent home buyers,” the Supreme Court stated in its order, as reviewed by HT.
The ED highlighted its proactive approach in resolving this complex legal issue. Recognizing the potential for prolonged litigation between the IBC and PMLA frameworks, the agency sought a harmonious solution that upheld the objectives of the PMLA while prioritizing the interests of the affected homebuyers.
The ED conducted thorough verification of 221 homebuyers’ details and subsequently submitted a no-objection statement for the restitution of the attached properties. This paved the way for the Supreme Court’s order on October 10, 2025, which confirmed the restitution of properties worth approximately ₹175 crore to the successful resolution applicant of UEWPL. This brings a much-needed conclusion to the plight of 213 innocent homebuyers, who had been waiting for over 12 years after investing their hard-earned savings, and ends a protracted litigation spanning over seven years between UEWPL and the ED.
In a shift of strategy, the ED has been increasingly focusing on attaching proceeds of crime and returning them to victims. Recent data indicates that the ED has already restituted assets worth ₹34,580 crore, with a significant portion linked to fugitives like Vijay Mallya, Nirav Modi, and Mehul Choksi.