The Enforcement Directorate has facilitated restoration of ₹235-crore worth of attached commercial properties to Indian Bank in the alleged Saravana Stores Gold Palace “bank fraud” case.
In May 2022, the agency had launched a probe into the money-laundering aspect based on a First Information Report registered by the Central Bureau of Investigation.
Two attachment orders by the ED involving ₹275 crore were confirmed. “Following the procedures, a special court in Chennai, allowed the restoration under Section 8(8) of the Prevention of Money Laundering Act (PMLA). This has been done even before framing of charges,” said an agency official.
The petition was filed by Indian Bank seeking restoration under the PMLA provisions. The ED did not object to the process. It submitted that bank was a victim of crime and was entitled to get restoration of the properties attached by the agency to realise its dues.
“The petitioner is a public sector bank and the money involved is public money. The money must come to the disbursal of public forthwith not after the end of trial of predicate offence case or money laundering case pending against the borrowers. This may take several years. The banks are in crisis and no attempt to delay or block the recovery and realization of dues from the borrowers can be allowed when the property attached by the 1st respondent [ED] has no way connected with the proceeds of crime in actual sense,” read the court order, partly allowing the petition for restoration.
The bank is the complainant in the case registered by the CBI against Saravana Stores (Gold Palace), its partners, and unknown public servants. The CBI has also filed a chargesheet in the matter.
The agencies found that for availing the loans, the firm had mortgaged the certain properties in favour of the bank as security. The accused defaulted on repayment of the loan facilities and the accounts were classified as non-performing assets on July 7, 2019.
Published – February 18, 2025 09:17 pm IST