Gurgaon, Haryana (Commonwealth Union)_ In a significant development, the Enforcement Directorate (ED) has, for the first time, restituted 78 flats valued at over Rs 20 crore to homebuyers affected by SRS Group’s Pearl, City, and Prime projects in Gurgaon. This action marks a milestone in the restitution process and comes in response to directives from the Supreme Court and the Punjab and Haryana High Court.
The restitution process is part of a larger effort by the ED to address financial irregularities and fraud involving the SRS Group. According to sources, the ED is currently engaged in restituting properties worth Rs 2,215 crore that were previously attached from the SRS Group’s projects. This process involves verifying claims from homebuyers to ensure that only legitimate claims are honored.
Once the authenticity of each homebuyer’s claim was confirmed, the ED requested the appellate tribunal to release 78 properties from the attached list. The goal was to return these properties to the genuine homebuyers who had been defrauded. On Monday, the appellate tribunal granted permission for this restitution, allowing the ED to proceed with transferring the flats back to their rightful owners.
A senior official from the ED highlighted the importance of this decision, stating, “This represents a crucial advancement in the restitution process and underscores the directorate’s commitment to securing justice for innocent homebuyers who were defrauded by SRS Group.” The official also noted that the ED plans to extend similar efforts to restore thousands of other properties that have been attached in various money laundering cases, ensuring that the actual beneficiaries receive what they are rightfully owed.
This recent move follows an earlier action by the ED where Rs 12 crore worth of fixed deposits, linked to the accused in Kolkata’s Rose Valley chit fund scam an extensive fraud involving Rs 10,000 crore were restituted. These funds are to be distributed among 20 lakh claimants by a court-appointed committee. This example demonstrates the ED’s broader strategy of returning assets to affected individuals and highlighting the agency’s ongoing efforts to address financial misconduct.
The legal framework guiding these restitution efforts is found under Section 8(8) of the Prevention of Money Laundering Act (PMLA). This provision allows the ED to restore assets to claimants with a legitimate interest in the property who have suffered quantifiable losses due to money laundering offenses. To facilitate such transfers, the ED must prepare a ‘panchnama’ a detailed record of the property transfer, which serves as evidence during the trial.
The restitution of the 78 flats in Gurgaon not only provides relief to the defrauded homebuyers but also sets a precedent for how similar cases may be handled in the future. It reflects the ED’s commitment to ensuring that victims of financial crimes receive justice and their rightful claims are addressed. The process underscores the broader implications of legal and regulatory actions in safeguarding the interests of those who have been adversely affected by fraudulent activities.
As the ED continues its work, it remains focused on restoring assets and securing justice for victims of financial fraud. The agency’s proactive stance in addressing these issues is a crucial step towards maintaining public trust and upholding the principles of fairness and accountability in financial dealings.
Restitution in the Rose Valley case was carried out following a directive from the Calcutta High Court. The court had established an asset disposal committee, led by Justice Dilip Kumar Seth, to oversee the sale of the accused company’s assets through public auction. The proceeds from these sales are to be deposited into a separate account opened by the committee.
