A Special Court in Mumbai, under the Prevention of Money Laundering Act (PMLA), has directed the return of attached immovable properties valued at Rs 22.40 crore to rightful claimants. This decision was made by the Additional Sessions Judge on July 23. The Enforcement Directorate’s Mumbai Zonal Office had launched a money laundering probe against Vinod Kumar Chaturvedi, Manoj Pathak, and others for their alleged involvement in generating and laundering illicit proceeds.
The investigation uncovered that M/s Usher Agro Ltd., a company controlled by Chaturvedi and Pathak, allegedly duped banks of around Rs 916 crore by diverting loan funds through shell companies. The ED had provisionally attached properties worth Rs 22.40 crore in 2021, which were later confirmed by the Adjudicating Authority under the PMLA. Additionally, the ED had filed a prosecution complaint seeking the confiscation of these properties as proceeds of crime.
Following the initiation of Corporate Insolvency Resolution Process (CIRP) against M/s Usher Eco Power Ltd. by the National Company Law Tribunal (NCLT) in Mumbai, liquidation proceedings commenced due to the failure of the resolution process. Subsequently, the liquidator approached the Special PMLA Court to request the restoration of the attached properties. Acknowledging the PMLA’s objective to restore crime proceeds to legitimate claimants, the ED supported the release of the assets, leading to the court’s order on July 23 for the restitution of the properties to the rightful owners.
The ED emphasized that this action signifies a significant stride in their endeavor to ensure that the proceeds of crime are eventually returned to victims of financial fraud.
