In a major relief to hundreds of homebuyers, the Enforcement Directorate (ED) has restored flats, commercial units, and plots worth ₹175 crore to more than 200 people who had been waiting for possession of their homes for over 12 years.
The restored assets belong to the Royal Rajvilas (RRV) project in Udaipur, Rajasthan, which includes 354 unsold flats, 17 commercial units, and 2 plots. The project’s present market value is estimated at around ₹175 crore, the ED said in an official statement on Tuesday.
The case stems from a money laundering probe against Bharat Bomb and others, accused of defrauding Syndicate Bank (now Canara Bank) of ₹1,267.79 crore between 2011 and 2016. In April 2019, the ED had attached properties worth ₹535 crore in the case, including ₹83.51 crore worth of unsold and unregistered assets of Udaipur Entertainment World Private Limited (UEWPL).
Following legal challenges, the company was admitted to insolvency before the National Company Law Tribunal (NCLT), Mumbai. The NCLT approved a resolution plan in February 2022 and vacated the ED’s attachment order. However, the ED was not made a party to the proceedings, a point later highlighted by the Rajasthan High Court, which observed that the ED had “suffered” due to non-impleadment.
Subsequently, the new management of UEWPL approached the Supreme Court, which directed both parties to reach a consensus to protect the interests of genuine homebuyers. Acting on this direction, the ED verified the list of affected buyers and filed a No Objection Certificate (NOC) before the apex court for restitution of the attached properties.
In its order dated October 10, the Supreme Court allowed the restoration of properties under Section 8(8) of the Prevention of Money Laundering Act (PMLA) to the successful resolution applicant for the sole benefit of the genuine homebuyers.
The ED described its approach as “proactive” and aimed at achieving a “harmonious” solution without compromising the objectives of the PMLA.
The Supreme Court appreciated the ED’s role, stating:
“We place on record our appreciation for the efforts made by the learned counsel for the parties and the Directorate of Enforcement in restoring the attached properties to secure the interests of genuine and innocent home buyers.”
The apex court clarified that the order was passed on the “peculiar facts” of the case and would not serve as a precedent in future matters.
This judgment marks the end of a 12-year ordeal for 213 homebuyers and concludes over seven years of litigation between UEWPL and the ED.
