Court restores Rs 952 crore Vadraj Cement assets in money laundering case
A Special Court under the Prevention of Money Laundering Act (PMLA), Mumbai, has allowed the restoration of immovable properties worth Rs 952 crore belonging to Vadraj Cement Limited (formerly ABG Cement Ltd.) to its rightful claimants in the IL&FS money laundering case.The properties, including the company's Surat Cement Plant, had been provisionally attached by the Directorate of Enforcement (ED) on January 21, 2020, after an investigation revealed fraudulent loans worth Rs 952 crore availed from IL&FS Financial Services Ltd. (IFIN). The Adjudicating Authority confirmed the attachment on August 5, 2021.advertisementPunjab National Bank led the list of lenders to Vadraj Cement, with an admitted claim of Rs 2,122 crore. Other major creditors included 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).
The ED had initiated an investigation under PMLA against IL&FS and its group companies for generating and laundering proceeds of crime (POC). During the probe, authorities found that Vadraj Cement fraudulently obtained loans and classified them as POC.The Special Court passed the restoration order on June 25, 2025, after Nuvoco Vistas Corporation Ltd.—a Nirma Group subsidiary and the successful resolution applicant under the Insolvency and Bankruptcy Code (IBC)—sought restoration of the property. The National Company Law Tribunal (NCLT), Mumbai, approved Nuvoco's resolution plan on April 1, 2025. As part of the plan, Nuvoco will pay Rs 1,706 crore to Vadraj's financial creditors.advertisement'In continuation of the Directorate of Enforcement's (ED) ongoing efforts for restitution of properties to their rightful owners and in order to put the productive assets to use, enabling financial institutions to monetise the assets attached or seized/secured by ED, a concerted effort was put by ED in the IL&FS case,' the agency said in a statement. 'Assets worth Rs 952 Crore were restituted / restored to the rightful claimant, by the Hon'ble Special Court (PMLA), Mumbai vide order dated 25.06.2025, after the NOC issued by the ED in this regard.'Considering PMLA's objective to return the POC to legitimate claimants, the ED submitted a no-objection before the court. The Hon'ble Additional Session Judge passed the restoration order in PMLA Special Case No. 6/2019 under Sections 8(8) and 8(7) of PMLA and Rule 3A of the PML (Restoration of Property) Rules, 2016.The court directed the applicant to provide an undertaking to return or restore the property or its value as may be ordered in future. It also instructed the ED to prepare a detailed inventory of the property before handing over possession.- Ends
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