The Enforcement Directorate (ED) has facilitated the return of 78 properties amounting to ₹20.15 crore to the genuine homebuyers of various projects of the SRS Group, following a rigorous verification of documents and issuance of no-objection certificates for registration of those properties.
The agency had provisionally attached assets worth about ₹2,215 crore on August 8, 2020, in the matter of SRS Group of companies with respect to a case of alleged fraud committed against various homebuyers and investors. The attached properties were registered in the name of SRS Group entities. Among the affected projects were SRS Pearl, SRS City and SRS Prime.
The action was partially confirmed by the Adjudicating Authority under the Prevention of Money Laundering Act (PMLA). The agency appealed before the Appellate Tribunal for full confirmation.
“It was further revealed that despite taking money from homebuyers in lieu of the residential units, SRS Group of companies never registered the said properties in the name of respective homebuyers. Pursuant to the directions of the Supreme Court and the Punjab and Haryana High Court, rigorous and massive verification exercise of the claimants/homebuyers was undertaken by the ED,” it said.
In continuation to the exercise, the ED submitted before the Appellate Tribunal for dropping of 78 properties registered in the name of SRS Group so as to get them back to the homebuyers who have been found genuine. “The same has been accepted by the Appellate Tribunal vide an order dated August 12, 2024. This marks a significant step in the restitution of such properties and underlines the commitment of the ED in securing justice for the innocent homebuyers who were defrauded by SRS Group,” said the agency.
Rose Valley Group case
Earlier this month, in the Rose Valley Group case probed by the ED, a Kolkata special court had ordered restitution of ₹12 crore to the investors who were cheated. The agency had requested the Assets Disposal Committee (ADC) constituted by the High Court to approach the special court for the return of the attached/seized properties.
Subsequently, the ADC filed an application before the special court. “The Rose Valley promoters opposed this move..., but the ED and the ADC convinced the court of the merits of the request, obtaining an order for release of attached properties in favour of the bona fide investors,” it said.
As alleged, the Rose Valley Group had amassed illegal deposits from the public, promising high returns and land parcels. The ED booked two cases under the PMLA: in the first, properties worth ₹12 crore were prayed for confiscation; and in the second, properties with deed value of about ₹1,200 crore have been prayed for confiscation.
“With the trial in the first case already under way, the ED requested the court for the release of properties, paving the way for further restitution of more properties in the second charge sheet,” the agency said, adding that the court ordered that ₹12 crore be disbursed to the bona fide claimants on a pro-rata basis or as directed by the ADC or the court.
Published - August 14, 2024 11:09 am IST
