E-Paper
ED restitutes unsold inventory worth ₹175 crore to homebuyers; SC appreciates
ED said that the restoration of assets will ultimately benefit around 213 homebuyers who had purchased the units and were suffering for over 12 years
New Delhi: The Enforcement Directorate (ED) has restituted the unsold inventory of 354 flats, 17 commercial units and 2 plots in project Royal Rajvilas (RRV) at Udaipur, with a present market value of about ₹175 crores, to the resolution applicant of Udaipur Entertainment World Private Limited (UEWPL), appointed under IBC (insolvency and bankruptcy code), 2016, a development which has been appreciated by the Supreme Court as well.
The agency said in a statement on Tuesday that the restoration of assets will ultimately benefit around 213 homebuyers who had purchased the units and were suffering for over 12 years.
The financial crimes probe agency had launched a money laundering probe into the matter in 2019 based on first information reports (FIRs) filed by the Central Bureau of Investigation (CBI). It is alleged that Bharat Bomb, an Udaipur based chartered accountant and his associates, who defrauded the Syndicate Bank (now Canara Bank) to the tune of ₹1267.79 crore using the modus operandi of discounting of forged cheques, discounting of forged inland bills and drawing loans against forged insurance policies from 2011 to 2016. The proceeds of bank fraud had been diverted in the project Royal Rajvilas.
During the probe, properties worth ₹535 crore, including in the form of unsold/unregistered inventory from Udaipur Entertainment World Private Limited (UEWPL), was attached by ED under the prevention of money laundering act (PMLA).
According to ED, “the corporate debtor i.e. UEWPL, was admitted into CIRP (corporate insolvency resolution process) by the NCLT (National Company Law Tribunal), Mumbai filed by an initial set of homebuyers in project Royal Rajvilas.
The NCLT, through a February 2022 order, approved the Resolution Plan of the UEWPL and also vacated the properties attached by the ED.
The matter reached the Supreme Court, which passed an order in the case on October 10 in which it appreciated the ED’s efforts to restitute the properties to 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 SC said in its order, reviewed by HT.
Sharing details of steps taken by ED for restoration of properties, the agency said on Tuesday - “Since this instant issue involved a complex question of law involving interplay between IBC, 2016 and PMLA, 2002, which could have prolonged the ongoing litigation before the various forums, ED took proactive approach to arrive at a harmonious solution without compromising the objective of the PMLA, 2002 and interest of the 213 homebuyers who were suffering due to the prolonged litigations”.
ED verified the details of 221 homebuyers and submitted a no objection in restitution of the attached properties, it said.
It further said - “In view of the affidavit made by ED, the Supreme Court has passed order dated 10.10.2025 wherein the attached properties, having a present market value of about ₹175 crores, now stand restituted under section 8 (8) of the PMLA, to the successful Resolution Applicant of M/s Udaipur Entertainment World Private Limited for the sole benefit of the genuine and innocent homebuyers, thus bringing an end to the plight of 213 innocent homebuyers who had been suffering for more than 12 years after putting their hard earned money/ savings and the protracted litigation of over 7 years between UEWPL and the ED.”
HT reported on October 13 that ED has changed its strategy, by focusing on attaching proceeds of crime and restoring the same to the victims.
ED’s latest data, seen by HT, reveals that it has already restituted assets worth ₹34,580 crore, out of which over ₹ 15,000 crore is linked to fugitives Vijay Mallya, Nirav Modi and Mehul Choksi.
