In a significant development in Hyderabad, the Enforcement Directorate (ED) has successfully completed the restitution process for five attached immovable properties, with a current market valuation of approximately ₹16 crore, to the Punjab National Bank (PNB). This action was carried out under the stringent provisions of the Prevention of Money Laundering Act (PMLA), marking a crucial step in addressing financial fraud.
Background of the PMLA Investigation
The ED initiated its probe based on a Central Bureau of Investigation (CBI) First Information Report (FIR) against Ghanshyamdas Gems & Jewels and its managing partner, Sanjay Agarwal. The case centered on allegations of fraudulently inducing the State Bank of India (SBI) to release 250 kilograms of gold by submitting forged bank guarantees, purportedly issued by PNB. This fraudulent activity triggered a comprehensive investigation into money laundering activities.
Details of the Restituted Properties
The properties, which were attached during the PMLA investigation, include a plot of land and agricultural lands situated in the Ranga Reddy and Medak districts of Telangana. Originally valued at ₹2.5 crore at the time of attachment, their present market worth has surged to around ₹16 crore. The Special PMLA Court in Nampally granted permission for the restitution, facilitating the return of these assets to PNB, the victim of the fraud.
Unraveling the Fraud and Money Trail
The ED's investigation uncovered a complex web of deceit orchestrated by Sanjay Agarwal. Upon the fraud becoming public, Sanjay and his brothers, Ajay Kumar and Vinay Kumar, swiftly removed the entire stock of gold from their shop in Abids and sold it in the local market for cash. This gold had been mortgaged to PNB, highlighting the severity of the breach of trust.
The proceeds from this illicit sale were then channeled into a new firm established in December 2012 by Sanjay Agarwal, registered in his wife's name. Subsequently, he opened three additional firms in the names of his brothers and one in the name of an employee. The probe revealed substantial unexplained cash deposits in multiple bank accounts held by his family members and the firms under his control, indicating systematic money laundering.
Further Investigations and Legal Actions
In a startling revelation, the ED found that Sanjay Agarwal had obtained a passport under the fake identity of 'Srikanth Gupta', using it to travel abroad multiple times. He also opened numerous bank accounts to layer his illicit funds, complicating the money trail. This trail eventually led investigators to benami properties acquired in the name of an employee, Avinash Soni, showcasing the depth of the concealment efforts.
Earlier, on February 11, 2022, the ED arrested Sanjay Agarwal and provisionally attached nine immovable properties belonging to him, his family members, and benamis. A prosecution complaint was filed by the ED in April 2022 before the Special PMLA Court, setting the stage for further legal proceedings.
Restitution Process and Court Approval
PNB was encouraged to file a restitution application under Section 8(8) of the PMLA, 2002, before the Special PMLA Court. The ED conveyed its concurrence for the restitution of the attached immovable properties, enabling their restoration to the bank as the aggrieved party. On January 19, the Special PMLA Court allowed PNB's restitution petition, thereby paving the way for the formal return of the assets.
This case underscores the ED's commitment to combating financial crimes and ensuring justice for victims of fraud. The restitution of properties valued at ₹16 crore to PNB not only provides monetary relief but also serves as a deterrent against similar illicit activities in the future.
