KOLKATA: In a significant stride toward reclaiming proceeds of crime under the Prevention of Money Laundering Act (PMLA), 2002, the Enforcement Directorate (ED) has successfully returned properties valued at approximately ₹9.56 crore to the Official Liquidator of Kaushik Global Logistics Ltd., as per the direction of a special PMLA court at Bichar Bhawan, Kolkata.
The restitution follows a prolonged legal battle involving financial irregularities by the directors of the Kolkata-based firm. The case centres on directors Dhananjay Singh, Sanjay Singh, and Mritunjay Singh, who had allegedly defrauded the State Bank of India (SBI) by availing credit and term loan facilities amounting to ₹85.39 crore. These funds, sanctioned for the procurement of Volvo and Mercedes buses for public transport operations, were reportedly diverted using fictitious accounts and complex financial layering.
By June 2013, the loans had turned into Non-Performing Assets (NPAs), with an outstanding balance of ₹60.38 crore. The Central Bureau of Investigation (CBI) had registered an FIR, following which the ED initiated a probe into money laundering.
Proceeds of Crime Identified and Attached
The ED’s investigation uncovered proceeds of crime worth ₹10.86 crore, which were subsequently attached under two Provisional Attachment Orders (PAOs). These attachments were later confirmed by the Adjudicating Authority under PMLA. A Prosecution Complaint was filed against the company and its directors.
Subsequently, the Official Liquidator appointed by the National Company Law Tribunal (NCLT), Kolkata, filed an application under Section 8(8) of the PMLA seeking restitution of the attached assets.
Restitution of Assets to Liquidator
Upon hearing the matter, the Special PMLA Court directed the ED to hand over the attached assets to the Liquidator. In compliance, the ED restituted 10 immovable and 9 movable properties.
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The development marks a significant moment in the agency’s continued crackdown on financial fraud and emphasises its commitment to asset recovery and victim restitution. The return of assets also showcases the interplay between criminal and corporate insolvency proceedings under Indian law.
This case reflects the increasing operational synergy between investigative and judicial agencies in ensuring that fraudulently obtained public funds are restored to the legitimate stakeholders.