In New Delhi on December 13, LatestNewsX reported that the Directorate of Enforcement (ED) has returned property worth 40 crore to Indian Bank, continuing its effort to recover assets tied to a money‑laundering inquiry involving Saravana Stores (Gold Palace) and its partners. Earlier, the ED had handed back three properties totaling 235 crore on 17 February 2025, bringing the overall restitution from the case to 275 crore.
The loan applicant is alleged to have caused a wrongful loss of 312.13 crore to the bank. The ED’s restitution actions were taken to support a filing by Indian Bank under Section 8(8) of the PMLA. The investigation began after the CBI registered an FIR under several IPC sections, the 1860 Indian Penal Code, and the Prevention of Corruption Act of 1988, following a complaint from Indian Bank.
The FIR claims that Saravana Stores’ partners fraudulently obtained 240 crore in credit facilities and redirected the money for unauthorized uses. It further accuses the loan applicant of submitting falsified and overstated stock statements, abusing working‑capital limits, transferring funds to personal accounts, removing hypothecated stock without bank approval, and acquiring assets through the diversion of bank money.
The account was classified as a non‑performing asset (NPA) on 7 July 2019, later deemed a fraud and willful default, leading to the said loss for Indian Bank. During the PMLA probe, investigators uncovered systematic diversion and misappropriation of bank funds. The ED had previously provisionally attached immovable properties worth 274.76 crore via two Provisional Attachment Orders, which were confirmed by the Adjudicating Authority on 24 January 2023 and 27 October 2023. Subsequently, a Prosecution Complaint was filed in the Special Court (PMLA) on 18 January 2024.
After Indian Bank requested the restoration of the attached assets under Section 8(8) PMLA, the ED carried out the necessary measures. The Special Court, on 17 February 2025, restored the three properties valued at 235 crore. The bank later sought additional property worth 40 crore before the High Court; given the public interest and the bank’s significant loss, the High Court, on 23 October 2025, granted the restoration.
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