CHENNAI: The Enforcement Directorate’s Chennai zonal office on Monday said that they have restituted 27 immovable properties in Chennai valued at Rs 163.85 crore under the provisions of the Prevention of Money Laundering Act (PMLA) to the State Bank of India (SBI) in a Rs 380-crore bank fraud case involving Nathella Sampath Jewellery Private Limited (NSJPL) and others.
The restitution was made as per the orders of the Prinicipal Sessions/Special Court, Chennai, under Section 8 (8) of PMLA.
ED had initiated a probe under PMLA based on a 2018 FIR registered by the CBI on a complaint filed by SBI on behalf of the consortium of three banks which had provided a loan of Rs 380 crore to NSJPL. It was alleged in the FIR that the accused entity diverted the funds for unintended purposes and did not repay the banks.
Nathella Sampath allegedly cheated the banks and caused them wrongful loss, the release said. ED’s investigation showed that the promoters of NSJPL used several entities to route and layer the loan funds for unintended purposes and personal benefits.
During investigation, 37 immovable properties amounting to `328.44 crore which were assets equivalent to the value of proceeds of crime were attached by ED on July 31, 2018 under Section 5 of PMLA. A year later, a prosecution complaint was also filed before the PMLA special court with charges being framed on October 28, 2024 with a trial under way.
Now, SBI filed an application for restitution of 27 attached properties and claimed that it had first right on the 27 attached immovable properties, being the financial creditor under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFESI) Act.
The properties were released to SBI on September 12 as per court orders, the ED said.