New Delhi: The Enforcement Directorate (ED) has restored properties worth ₹175 crore — including flats, commercial units, and plots — to over 200 homebuyers who had been awaiting possession of their homes for more than 12 years, the agency announced on Tuesday.
The restored assets comprise 354 flats, 17 commercial units, and two plots from the Royal Rajvilas (RRV) project in Udaipur, Rajasthan. The ED stated that the project’s current market value is around ₹175 crore.
The case stems from a money laundering probe against Bharat Bomb and others, accused of defrauding Syndicate Bank (now Canara Bank) of ₹1,267.79 crore between 2011 and 2016. In April 2019, the ED attached assets worth ₹535 crore in connection with the case, including unsold and unregistered inventory valued at ₹83.51 crore belonging to Udaipur Entertainment World Private Limited (UEWPL).
After multiple legal challenges to the attachment order, UEWPL entered insolvency proceedings before the National Company Law Tribunal (NCLT). In February 2022, the NCLT, Mumbai approved UEWPL’s resolution plan and vacated the ED’s attachment order related to its properties — without making the ED a party to the case.
Subsequently, the Rajasthan High Court ruled that the ED had been “prejudiced” by its exclusion from the NCLT proceedings. The new management of UEWPL then appealed to the Supreme Court, which urged both parties to reach a consensus to safeguard the interests of genuine homebuyers who had been unable to obtain possession due to prolonged legal disputes.
Following the apex court’s direction, the ED reviewed the list of homebuyers admitted before the NCLT and issued a No Objection Certificate for the restitution of the attached properties to benefit the bona fide buyers, excluding certain assets.
Adopting what it called a “proactive” and “harmonious” approach, the ED emphasized that it sought to protect homebuyers’ interests without compromising the objectives of the Prevention of Money Laundering Act (PMLA).
On October 10, the Supreme Court ordered that the attached properties — valued at approximately ₹175 crore — be restituted under Section 8(8) of the PMLA to the successful resolution applicant of UEWPL for the exclusive benefit of the genuine homebuyers.
The ruling effectively ends the 12-year ordeal of 213 homebuyers and concludes a seven-year legal battle between UEWPL and the ED.
The Supreme Court clarified that the order was based on the unique circumstances of the case and should not serve as a precedent. It also left the underlying questions of law open for determination in future cases.
Commending the agency’s efforts, the Court stated, “We place on record our appreciation for the efforts made by the learned counsel for the parties and the Directorate of Enforcement in restoring the attached properties to secure the interests of genuine and innocent homebuyers.”
