In a significant move to compensate victims of the Rs 2,000-crore Popular Finance scam, the Special Court for PMLA Cases at Ernakulam has directed the transfer of attached assets valued at Rs 65.07 crore to the Competent Authority under the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act). The order, dated February 10, 2026, specifies that movable properties worth Rs 33.20 crore and immovable assets amounting to Rs 31.87 crore, previously seized by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002, are to be handed over for distribution among depositors.
The ED had issued provisional attachment orders in September and December 2021 during its investigation into alleged money laundering associated with the fraud. The Special Court emphasized the need to prioritize the interests of affected depositors, common under both statutes, by facilitating the equitable distribution of assets. Objections raised by the accused will be considered for adjudication before the BUDS Authority.
This development unfolds as the Kerala High Court recently criticized the Competent Authority under the BUDS Act for delays in complying with previous court directives in the Popular Finance case. The High Court expressed concerns over the sluggish progress in asset management and restitution, despite a large number of investors awaiting relief.
