New Delhi: A recent Financial Action Task Force (FATF) report has recognised India’s robust legal framework and enforcement efforts in recovering public assets lost to financial crimes. The report cites an Enforcement Directorate (ED) money laundering case in which confiscated land has been earmarked for constructing an airport, serving as an example of asset recovery for public benefit.
The 340-page FATF report, titled “Asset Recovery Guidance and Best Practices,” highlights India’s effective anti-money laundering mechanisms used to secure assets worth crores of rupees under various circumstances — including domestic and international recoveries, time-sensitive cases, and actions against fugitives who fled the country after major scams and frauds.
Based in Paris, the FATF sets global standards for combating money laundering and terrorist financing. “The report outlines practical measures for policymakers and practitioners to identify, trace, freeze, manage, confiscate, and return assets derived from criminal activity,” the ED said in a statement, adding that the guidance acts as a benchmark for strengthening national frameworks.
The report features several ED-led money laundering cases where defrauded assets were successfully recovered, though it does not name individuals or entities involved. Among the examples are:
Restoration of assets to victims of the Rose Valley Ponzi scheme;
A drug trafficking case based on a U.S. request, in which Bitcoins worth ₹130 crore were seized; and
A joint effort by the ED and Andhra Pradesh CID that led to the recovery of assets worth ₹6,000 crore for victims of an alleged investment scam.
Another cited case involves a Maharashtra-based cooperative bank fraud, where the ED restored benami assets worth ₹280 crore to compensate victims after auctioning seized properties. The FATF report noted that these properties “have been identified as a site for the construction of a new airport to build infrastructure in India for the benefit of society at large.”
According to officials, India’s contribution to the FATF guidance was “substantial and widely acknowledged.” The ED said its legal expertise and operational experience under the Prevention of Money Laundering Act (PMLA) helped shape global best practices in areas such as value-based confiscation, provisional attachment, and inter-agency coordination.
The FATF report underscores the credibility of India’s enforcement mechanisms and their role in shaping future international standards, aiming for “tangible improvements” in the global process of asset confiscation and recovery.
