ED restores SBI's assets worth Rs 79 crore in money laundering case

The Enforcement Directorate (ED), Hyderabad Zonal Office, has successfully restored properties worth Rs 79.20 crore to the State Bank of India in connection with a money laundering case against Musaddilal Jewellers and others.

Based on ED's initiative, the State Bank of India (SBI) filed restitution applications under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002 before the Special PMLA Court for the release of moveable properties seized by the ED, Hyderabad Zonal Office.

The Central agency said in a release on Tuesday that it urged the Special Court to release the seized amount to the rightful claimant, i.e. SBI in the public interest.

The court through orders dated January 6 and February 3 allowed the petitions and ordered for release of moveable properties in the form of jewellery worth Rs 79.20 crore. This jewellery was seized from the commercial premises of Musaddilal Jewellers.

The ED has been investigating a money laundering case against Musaddilal Jewellers and others who had deposited more than Rs 111 crore in demonetised currency immediately after the demonetisation of high-value notes was declared in 2016.

The ED investigation revealed that demonetised currency was deposited under the pretext of receipt of advance money from around 6000 fake customers by creating fake invoices of less than Rs 2 lakh each. The investigation also revealed that the amount was deposited in various bank accounts and was utilised towards the purchase of gold bullion which was further sold. In this process, further Proceeds of Crime (POC) of Rs 28 crore were derived from such sale.

The SBI had extended various credit facilities to Musaddilal Jewellers which remained unpaid and the loan accounts turned NPA in July 2019. Musaddilal had outstanding dues to SBI of over Rs 120 crore as of March 14, 2023.

The ED had seized movable properties worth Rs 83.30 crore during searches conducted on January 12, 2017 and April 15, 2019. Provisional attachment of movable and immovable properties to the tune of Rs 130.57 crore, including movable properties worth Rs 83.30 crore seized during search operations, was also done by the ED during the investigation.

This marks a significant step in ED's ongoing efforts to restore properties to their rightful claimants and to ensure that Proceeds of Crime are returned to those affected. ED continues to uphold its commitment to combating financial crimes and ensuring justice for victims of such crimes, the agency said.