Hyderabad: The Directorate of Enforcement (ED), Hyderabad Zonal Office, has successfully completed the process of restoring five immovable properties valued at approximately ₹255 crore to the Punjab National Bank (PNB) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The properties were earlier attached during the ED’s investigation against M/s Ghan Shyamdas Gems & Jewels and its managing partner Sanjay Agarwal in a major bank fraud case.
According to the ED, the restored assets comprise land parcels and agricultural properties located in Rangareddy and Medak districts of Telangana. The restoration was carried out following permission granted by the Special PMLA Court, after which the attached properties were formally handed back to the victim bank. The agency stated that the current market value of the restored properties is estimated at around ₹16 crore.
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The ED had initiated its investigation in the case on October 19, 2011, based on an FIR registered by the Central Bureau of Investigation (CBI), Bank Securities and Fraud Cell (BS&FC), Bengaluru. The FIR alleged that Ghan Shyamdas Gems & Jewels and its partners had cheated the State Bank of India (SBI) by submitting a forged bank guarantee purportedly issued by Punjab National Bank, on the strength of which 20 kilograms of gold was fraudulently obtained.
The ED’s probe revealed that soon after the fraud came to light, Sanjay Agarwal, along with his brothers Ajay Kumar and Vinay Kumar, removed the entire stock of gold from their shop located in Abids, Hyderabad. The gold, which had been pledged with PNB, was allegedly sold in the local market for cash. The proceeds of the sale were then diverted and layered through multiple financial transactions to conceal their illicit origin.
According to the investigating agency, a portion of the proceeds of crime was invested in December 2012 in a newly floated firm opened by Sanjay Agarwal in the name of his wife. Subsequently, the accused floated three more firms in the names of his brothers and an employee. The ED found that large amounts of unaccounted cash were deposited into several bank accounts opened in the names of family members and entities controlled by the accused.
The investigation further revealed that Sanjay Agarwal had obtained a passport using a fake identity under the name ‘Vikant Gupta’ and undertook multiple foreign travels. The agency alleged that several bank accounts were opened to park and layer illicit funds, while efforts were made to disguise the proceeds of crime through complex financial transactions. The ED also detected benami properties acquired in the name of an employee, Avinash Soni, during the course of its financial trail analysis.
Earlier, the ED had arrested Sanjay Agarwal on February 11, 2022, and provisionally attached nine immovable properties linked to him, his family members and benami holders. These attachments were carried out as part of the ongoing money laundering investigation. Subsequently, a prosecution complaint was filed on April 11, 2022, before the Special PMLA Court at Nampally, Hyderabad.
The ED stated that Punjab National Bank was advised to file a restoration application under Section 8(8) of the PMLA, 2002, seeking return of the attached properties as the victim of the scheduled offence. The agency extended its consent for restoration to ensure that the attached assets could be returned to the defrauded bank towards recovery of losses.
Acting on the application, the Special PMLA Court, Nampally, Hyderabad, by its order dated January 19, 2026, allowed the restoration plea filed by PNB, paving the way for the return of the attached immovable properties.
The ED said that the restoration of assets reflects the statutory intent of the PMLA to prioritise the interests of victims of financial crimes. The agency added that further legal proceedings in the matter will continue in accordance with the provisions of the law.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
