ED Restores ₹100 Crore Assets to Defrauded Banks

The Enforcement Directorate restituted ₹100 crore in assets to banks defrauded by Pixion Media Limited. The ED's action follows cases filed by the CBI, prompted by complaints from several banks alleging fraud by company promoters. The restitution aligns with the PMLA, benefiting rightful claimants.

The Enforcement Directorate (ED) announced on Thursday the restitution of assets valued at ₹100 crore to banks allegedly defrauded by the Delhi-based Pixion Media Limited and its promoters.

The properties were restored to the liquidator of Pixion Media Limited on behalf of the banks. During investigations under the Prevention of Money Laundering Act (PMLA), assets worth around ₹156 crore were attached, according to an ED statement. The case originated from multiple FIRs by the Central Bureau of Investigation (CBI) against Pixion Media and its affiliates for defrauding banks like Punjab National Bank, Indian Overseas Bank, and others to the tune of ₹657.11 crore.

The creditor banks initiated a Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, appointing a liquidator in August 2019. After the banks sought asset restoration via a special PMLA court, the ED consented, leading to the court's order on January 29. The agency claims the fraud involved fraudulent documents leading to misappropriated loan funds used to acquire various assets.

(With inputs from agencies.)