HomeLatestED Returns Flats to Defrauded Homebuyers

ED Returns Flats to Defrauded Homebuyers

The Enforcement Directorate (ED) has initiated the process of returning 78 flats to their rightful owners. These flats, valued at over Rs20 crore, were part of the SRS Group’s projects in Gurugram, including SRS Pearl, SRS City, and SRS Prime. The ED’s decision to return the flats follows an order from the Appellate Tribunal established under the Prevention of Money Laundering Act (PMLA).

The tribunal authorized the ED to restore these assets to their legitimate owners, recognizing the severe financial hardships faced by the homebuyers. The ED’s action is part of a broader investigation into the SRS Group, which began in January 2020. The central agency had attached assets worth Rs2,215 crore due to allegations of fraud. The SRS Group was accused of receiving payments for residential units but failing to register them in the homebuyers’ names. Following the attachment of assets, the Adjudicating Authority of the PMLA partially confirmed the attachment.

However, the ED appealed to the Appellate Tribunal, which upheld its appeal. The case also involved interventions from the Punjab and Haryana High Court and the Supreme Court, which directed the ED to conduct a thorough verification process to ensure that the flats were returned to the genuine claimants. The ED has now completed this verification and issued no objection certificates (NOCs) to facilitate the registration of the flats to their rightful owners. The agency is also continuing to verify claims from additional homebuyers who have not yet received possession.

This case follows a similar action in Kolkata, where a special PMLA court ordered the restitution of assets worth Rs12 crore to investors defrauded by the Rose Valley group. These cases highlight the ED’s commitment to addressing financial crimes and ensuring justice for victims. Under section 8(8) of the PMLA, properties confiscated by the central government can be restored to legitimate claimants who have suffered due to money laundering offenses. The ED’s actions in these cases demonstrate its commitment to holding wrongdoers accountable and providing relief to those affected by their fraudulent activities.

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