Mumbai, Nov 28 (IANS) In the money laundering case against Cox & Kings Ltd. (CKL), the Enforcement Directorate successfully ensured the release of properties worth Rs 520.80 crore to Legitimate Claimant, an official said on Friday.

The Directorate of Enforcement (ED), Mumbai Zonal Office, said the total Proceeds of Crime identified in the CKL fraud amounts to approximately Rs 4,100 crore.

The case involves Cox & Kings Ltd. (CKL), its promoters and others, said the official in a statement.

During the investigation, it was revealed that Rs 1,066 crore out of the Proceeds of Crime was siphoned off to V Hotels Ltd. Out of this, Rs 520.80 crore remained outstanding and was attached under the Prevention of Money Laundering Act (PMLA), 2002. The Adjudicating Authority had confirmed the said attachment.

The ED said in its statement that V Hotels Ltd. underwent the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC), and Macrotech Developers Ltd. was approved as the Successful Resolution Applicant (SRA).

“Thereafter, in compliance with the Supreme Court order (in a Special Leave Petition filed by this Directorate), Successful Resolution Applicant (SRA) deposited Rs 520.80 crore in an interest-bearing fixed deposit with SBI, representing the substituted value of attached properties,” the statement said.

In proceedings before the Supreme Court, the ED, keeping in view Section 8(8) of PMLA and Section 32A of IBC, and consistent with earlier positions adopted in similar matters, conveyed its consent for restitution of the deposited amount to the SRA, subject to the condition that the SRA has no connection with the erstwhile management or beneficiaries of Proceeds of Crime, said the statement.

The Supreme Court has ordered restoration of the Rs 520.80 crore deposit (along with accumulated interest) to the SRA under Section 8(8), PMLA.

Importantly, the Supreme Court has expressly noted that: “We place on record our appreciation for the earnest efforts made by the officers of the Directorate of Enforcement in restoring the attached properties to secure the interests of justice.”

The Directorate remains firmly committed to ensuring confiscation of Proceeds of Crime and vigorous prosecution of those involved in money-laundering activities, while securing restitution of assets to rightful stakeholders in accordance with Section 8(8) of PMLA.

–IANS

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