HYDERABAD: The ED has restituted Rs 79.2 crore worth of properties — seized from Musaddilal Jewellers Pvt Ltd and others in a money laundering case — to the State Bank of India (SBI).
Backed by the ED, SBI filed restitution applications under Section 8(8) of the Prevention of Money Laundering Act, 2002, with Special PMLA Court, seeking the release of moveable properties seized by the agency. Subsequently, the ED urged the court to release the seized assets to SBI in the public interest. Through orders issued on January 6 and February 3, the court approved the petitions.
The agency has been investigating Musaddilal Jewellers and others for depositing over Rs 111 crore in demonetised currency immediately after the demonetisation exercise in 2016. The probe revealed that the money was deposited using fake invoices under 6,000 fictitious names, each under Rs 2 lakh. The amount was then used to buy bullion, which was sold to generate an additional Rs 28 crore in Proceeds of Crime (POC).
SBI had extended credit facilities to Musaddilal Jewellers, but the accounts turned NPAs in July 2019, with outstanding dues exceeding Rs 120 crore as of March 14, 2023. ED had earlier seized movable properties worth Rs 83.30 crore in searches on January 12, 2017, and April 15, 2019.
