ED Returns Rs 175-Crore Assets to Distressed Homebuyers, SC Commends Initiative
Over 200 homebuyers in Udaipur regain possession of flats and plots after 12 years, with SC praising ED’s proactive role in resolving prolonged litigation.
New Delhi, Oct 15: The Enforcement Directorate (ED) has restored flats, commercial units, and plots worth Rs 175 crore to more than 200 homebuyers who had been waiting for over 12 years to take possession of their properties, the agency said on Tuesday.
The restored assets include 354 flats, 17 commercial units, and two plots belonging to the Royal Rajvilas (RRV) project in Udaipur, Rajasthan, with a current market value of approximately Rs 175 crore.
The case originates from a money laundering investigation against Bharat Bomb and others, accused of defrauding Syndicate Bank (now Canara Bank) of Rs 1,267.79 crore between 2011 and 2016. In April 2019, the ED had attached properties worth Rs 535 crore, including unsold inventory of Udaipur Entertainment World Private Limited (UEWPL) valued at Rs 83.51 crore.
Following legal challenges, the National Company Law Tribunal (NCLT), Mumbai, approved the resolution plan of UEWPL in February 2022 and vacated the ED attachment for the company’s assets. However, the Rajasthan High Court later noted that the ED had not been impleaded as a party in the NCLT proceedings, and the matter was taken to the Supreme Court.
Acting on the SC’s directive to protect the interests of bona fide homebuyers, the ED coordinated with the Resolution Professional and new management of UEWPL, scrutinized claims, and submitted a No Objection Certificate for restitution of attached properties.
On October 10, 2025, the Supreme Court ordered that the attached assets, valued at Rs 175 crore, be restituted under Section 8(8) of the PMLA to the Successful Resolution Applicant for the exclusive benefit of the 213 genuine homebuyers, ending their 12-year ordeal and over seven years of legal wrangling.
The Supreme Court appreciated the ED’s efforts, noting: “…we place on record our appreciation for the efforts made by the learned counsel for the parties and the DoE (ED) in restoring the attached properties to secure the interests of genuine and innocent home buyers.”
The ED emphasized that the order was specific to the facts of this case and should not be treated as a precedent, with questions of law left open for future consideration.
This initiative highlights the ED’s proactive approach in balancing the objectives of the Prevention of Money Laundering Act (PMLA) while safeguarding the rights of innocent homebuyers affected by prolonged litigation.
