Hyderabad ED restores SBI’s assets worth Rs 79.20 crore in Musaddilal PMLA case

Hyderabad: The Directorate of Enforcement (ED), Hyderabad Zonal Office, successfully completed restoring properties worth Rs 79.20 crore in the form of jewellery to the State Bank of India in connection with a money laundering case against Musaddilal Jewellers and others.

Based on ED’s initiative, SBI filed restitution applications under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002, before the Special PMLA Court in Nampally here for the release of moveable properties seized by the ED, Hyderabad Zonal Office.

The Hyderabad ED urged the court to release the seized amount to the rightful claimant i.e. SBI in the public interest. The court, through orders, dated January 6 and February 2, allowed the petitions and ordered for release of moveable properties in the form of jewellery worth Rs 79.20 crore, which was the closing stock seized from commercial premises of Musaddilal Jewellers.

What is the money laundering case against Musaddilal?

ED has been investigating a money laundering case against Musaddilal Jewellers and others who had deposited more than Rs 111 crore in demonetised currency immediately after the demonetisation of high-value notes was declared in 2016.

The ED investigation revealed that demonetised currency was deposited under the pretext of receipt of advance money from around 6,000 fake customers by creating fake invoices of less than Rs 2 lakh each.

Musaddilal had owed SBI over Rs 120 crore

The investigation also revealed that the amount was deposited in various bank accounts and was utilised towards the purchase of gold bullion which was further sold. In this process, further Proceeds of Crime (POC) of Rs 28 crore were derived from such sales.

SBI had extended various credit facilities to Musaddilal which remained unpaid and the loan accounts turned NPA in July 2019; Musaddilal had outstanding dues to SBI of over Rs 120 crore, as of March 14, 2023.

ED had seized movable properties worth Rs 83.30 crore during searches conducted on January 12, 2017, and April 15, 2019. Provisional attachment of movable and immovable properties to the tune of Rs 130.57 crore, including movable properties worth Rs 83.30 crore was seized during search operations and during investigation.

The release of the properties marked a significant step in ED’s ongoing efforts to restore properties to their rightful claimants and to ensure that POC are returned to those affected. ED continues to uphold its commitment to combating financial crimes and ensuring justice for victims of such crimes.