ED Restores Rs 520 Crore to Company Amid Bank-Loan Fraud Case

Assets worth over Rs 520 crore, previously linked to a bank-loan fraud case, have been restored to the rightful claimants by the Enforcement Directorate. The case involved Cox & Kings Limited, with over Rs 4,100 crore identified as 'proceeds of crime'. The Supreme Court endorsed the restitution process.

The Enforcement Directorate (ED) has restored assets valued at over Rs 520 crore to a legitimate claimant company. These assets were previously attached under anti-money laundering provisions in a case concerning bank-loan fraud, as reported on Friday.

The extensive investigation targeted Cox & Kings Limited (CKL), its promoters, and associated entities, with the alleged 'proceeds of crime' totaling Rs 4,100 crore. It was unveiled that Rs 1,066 crore had been misappropriated to V Hotels Limited, a fraction of which was later attached under the Prevention of Money Laundering Act (PMLA).

The resolution, facilitated under the Insolvency and Bankruptcy Code, saw Macrotech Developers Limited become the successful applicant, leading to the restitution of the assets. With the Supreme Court's recent decision, the Rs 520.8 crore, stored in a fixed deposit with the State Bank of India, was officially restored to the rightful claimant.

(With inputs from agencies.)