ED Returns Assets Valued At Rs 163.85 Crore To SBI In Rs 380 Crore Bank Fraud Case

2025-09-15 11:45:27

(MENAFN- IANS) Chennai, Sep 15 (IANS) The Chennai Zonal Office of the Enforcement Directorate (ED) has restituted 27 immovable properties worth Rs 163.85 crore to the State Bank of India (SBI) in connection with the Rs 380 crore bank fraud involving Nathella Sampath Jewellery Private Limited (NSJPL).

The restitution followed orders issued by the Special Court in Chennai under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002.

The case dates back to March 2018, when the Central Bureau of Investigation (CBI) in Bengaluru registered an FIR based on a complaint filed by SBI on behalf of a consortium of three banks.

The consortium had extended loans totaling Rs 380 crore to NSJPL.

According to the complaint, the company diverted the funds for purposes other than those intended and defaulted on repayment, causing significant losses to the lenders.

Investigations by the ED revealed that the promoters of NSJPL routed and layered the funds through multiple entities for personal gain.

In July 2018, the ED attached 37 immovable properties valued at Rs 328.44 crore, treating them as equivalent to the "proceeds of crime".

A prosecution complaint was later filed before the PMLA Special Court in July 2019.

Charges were framed in October 2024, and the trial is currently underway.

During the proceedings, SBI moved the Special Court seeking restitution of 27 attached properties, asserting its first right over them as a financial creditor under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.

Supporting the bank's plea, the ED acknowledged SBI as a victim in the fraud.

The Special Court, invoking the provisions of Section 8(8) of PMLA, permitted the restoration of the assets.

Accordingly, on September 12, 2025, the 27 properties located in Chennai and valued at Rs 163.85 crore were officially released to SBI.

This restitution marks a significant step in recovering assets for banks that have suffered losses due to corporate frauds, while the trial against NSJPL and its promoters continues.

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