Mumbai court allows restoration of attached property worth Rs 952 Crore of Vadraj Cementt
New Delhi [India], June 29 (ANI): In a significant development in the IL&FS case, assets worth Rs 952 crore, which were attached by the Enforcement Directorate (ED), have been restored to the rightful claimant by the Special Court (PMLA), Mumbai, vide order dated June 25, 2025, following a no-objection certificate (NOC) issued by the agency.
The ED, in a statement on Saturday, said this move is in continuation of its efforts to return properties to their rightful owners and enable financial institutions to monetise attached or seized assets.
The ED, Mumbai Zonal Office, had initiated an investigation under the Prevention of Money Laundering Act (PMLA), 2002, against Infrastructure Leasing & Financial Services Ltd. (IL&FS), its group companies, and other associated entities for their role in the generation and laundering of proceeds of crime (POC).
During the course of the investigation, it was revealed that Vadraj Cement Limited (formerly ABG Cement Ltd.), a group company of ABG, had availed financial assistance from IL&FS Financial Services Ltd. (IFIN), which was later classified as non-performing. The investigation established that loans amounting to Rs 952 crore were fraudulently obtained and constituted proceeds of crime.
Accordingly, ED provisionally attached the immovable properties of Vadraj Cement Ltd., including its Surat Cement Plant, on January 21, 2020. The attachment was confirmed by the Adjudicating Authority on August 5, 2021. A prosecution complaint for the offence of Money Laundering was also filed in the matter before the Special Court (PMLA), Mumbai, praying for the confiscation of properties attached as POC.
The Punjab National Bank was the major lender to Vadraj Cement Ltd. with an admitted claim of Rs 2,122 Crore. The defunct cement company's other major lenders include Union Bank (Rs 1,620 Crore), Indian Overseas Bank (Rs 1,419 Crore), Central Bank of India (Rs 1,391 Crore) and JC Flower ARC (Rs 677 Crore).
https://x.com/dir_ed/status/1938889799752130590
Subsequently, M/s Nuvoco Vistas Corporation Ltd., a subsidiary of the Nirma Group and the Successful Resolution Applicant under the Insolvency and Bankruptcy Code, 2016 (IBC), filed an application before the Special Court (PMLA), Mumbai seeking restoration of the attached property to facilitate implementation of the resolution plan approved by the Hon'ble National Company Law Tribunal (NCLT), Mumbai on April 1, 2025.
As part of the resolution plan, Nuvoco Vistas Corporation Ltd. is set to pay Rs 1,706 crore to financial creditors for acquiring Vadraj Cement Ltd.
In light of the PMLA's objective to restore POC to bona fide and legitimate claimants, the ED submitted its no-objection before the Additional Sessions Judge for the release of the attached property.
Following ED's submission, the court passed an order on June 25, 2025, directing restitution of the immovable properties to the bona fide claimant.
The Special Court (PMLA), Mumbai, vide its order in PMLA Special Case No. 6/2019, has allowed the said application and directed the restoration of the attached property to Nuvoco Vistas Corporation Ltd. under Sections 8(8) and 8(7) of the PMLA read with Rule 3A of the PML (Restoration of Property) Rules, 2016.
The Court has further directed the Applicant to submit an undertaking to return or restore the property or its value as may be directed in future. The Court has also instructed the ED to prepare a detailed inventory of the property prior to handing over possession. The restoration order pertains solely to the attachment of Rs. 952 Crore arising out of the investigation made by the Mumbai Zonal Office. (ANI)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
17 minutes ago
- Economic Times
Torrent Pharma shares in focus after Rs 11,900 crore JB Chemicals acquisition
Shares of Torrent Pharmaceuticals are likely to be in the spotlight on Monday, June 30, after the company announced a major acquisition worth Rs 11,917 crore to acquire a controlling stake in J.B. Chemicals & Pharmaceuticals Ltd, another player in the pharmaceutical sector. ADVERTISEMENT In a board meeting held on June 29, Torrent Pharma approved a multi-step transaction to acquire a majority stake in JB Chemicals. The acquisition comprises the following: Share Purchase Agreement (SPA): Torrent will acquire 7.44 crore equity shares, representing 46.39% of JB Chemicals' fully diluted equity share capital, from its promoter, Tau Investment Holdings Pte Ltd, at Rs 1,600 per share, amounting to approximately Rs 11,917 crore, subject to shareholder and regulatory approvals. Potential Employee Acquisition: Torrent may further acquire up to 44.99 lakh equity shares (2.80%) from certain employees at a price not exceeding Rs 1,600 per share, through employee stock Offer: Torrent has also proposed an open offer to public shareholders to acquire up to 4.17 crore shares (26.00%) of the expanded capital at Rs 1,639.18 per share, in accordance with SEBI's Takeover Torrent will gain promoter status and a controlling interest in JB Chemicals, positioning it to expand its product offerings and leverage synergies between the two firms. ADVERTISEMENT JB Chemicals, incorporated in 1976, is a publicly listed company with a consolidated turnover of Rs 3,918 crore and a net worth of Rs 3,433 crore as of March 31, 2025. The company has consistently maintained strong financial performance over the last three proposed acquisition is subject to approvals from the Competition Commission of India (CCI), shareholders, and other statutory bodies. Torrent Pharma anticipates completing the deal within six months. ADVERTISEMENT On Friday, shares of Torrent Pharmaceuticals closed 3.7% higher at Rs 3,344.40 on BSE. Also read: Nifty ready to scale new highs on bullish mood: Analysts (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
27 minutes ago
- Time of India
Reliance Power bids for global tenders to build 1,500 MW gas plant
Anil Ambani 's Reliance Power Ltd is planning to set up a 1,500-MW gas-based power project overseas and is actively participating in several international tenders for its development, according to sources. Sources said, Reliance Power has submitted competitive bids for gas-based power projects in Kuwait, UAE, and Malaysia as part of its selective global expansion strategy. The company has recently secured two mega power projects in Bhutan - a 500-MW solar project and a 770-MW hydropower project. Based on the outcome of the ongoing international bids, Reliance Power plans to relocate two 750 MW modules of world-class equipment currently in its possession in India. The proposed project is expected to create significant value in Reliance Power's balance sheet, as the company aims to realise up to Rs 2,000 crore through the monetisation of these assets. When contacted, a Reliance Power spokesperson confirmed the company's participation in global tenders. Originally, the company had imported three modules of 750 MW world class equipment from General Electric, USA, for a gas-based combined cycle power project, out of which one module was exported to Bangladesh for an LNG based power project in partnership with Japan's JERA. Now, Reliance Power intends to deploy the remaining two modules for a similar project at an overseas location. The demand for gas-based power - widely regarded as a clean energy source - is significantly high in countries such as Kuwait, the UAE, and Malaysia. However, global suppliers like GE typically require 3 to 5 years to deliver equipment for gas or LNG-based power plants. In contrast, Reliance Power has 1,500 MW of equipment readily available, enabling it to execute such projects in the shortest possible timeframe. Reliance Power is actively focusing on renewable and clean energy. The company has a strong development pipeline, including 2.5 GWp of utility-scale solar projects and more than 2.5 GWh of Battery Energy Storage Systems (BESS). This positions Reliance Power as the largest private sector player in the integrated solar + BESS segment in India. Reliance Power has also entered into a joint venture with the Bhutan Government's Druk Holding & Investments (DHI) for the development of a 500 -MW solar project and a 770-MW hydropower project in Bhutan. This marks the largest foreign direct investment by an Indian private company in Bhutan's renewable energy sector.
Hans India
38 minutes ago
- Hans India
Minister orders action overcharging autos against
Bengaluru: KarnatakaTransport Minister Ramalinga Reddy has directed the Transport Commissioner to take strict action against app-based and other autorickshaws in Bengaluru that charge fares above the government-fixed rates, calling the practice a 'daylight robbery'. The Minister said permits of such autos should be cancelled and cases registered against the violators. 'If there is a complaint from passengers about overcharging, cancellation of the journey if the higher fare is not paid, immediate action should be taken and the permit of such autos should be cancelled and a case should be registered,' Reddy said in his letter to the Transport Commissioner, on June 28. 'For example: On June 18, 2025, Rapido Auto App charged Rs. 100.89 per km, while Auto O App charged Rs. 184.19 for a 4 km journey. This kind of daylight robbery from the public is unforgivable, strict action should be taken urgently.' There have been complaints from commuters about rising auto fares. The meter fare is fixed at Rs 30 for the first 1.9 km, and Rs 15 for every additional kilometre. The Minister noted that although the Transport Department had registered cases against auto drivers for refusing rides and demanding excess fares, complaints from the public continue to pour in. He has also attached copies of mobile phone screenshots shared by denizens, highlighting instances of overcharging and urged officials to take appropriate action. 'It has been directed to immediately formulate an effective action plan to protect the interest of the public and take stern action against the guilty auto drivers/owners,' added.
