Bhopal: The Enforcement Directorate (ED), through its Bhopal Zonal Office, has secured the restoration of properties worth nearly ₹45 crore at current market value to Canara Bank in connection with a major bank fraud and money laundering case involving M/s Jagdamba AMW Automotives Private Limited. The restitution was carried out following an order passed by the Special Court under the Prevention of Money Laundering Act (PMLA), Jabalpur, under Section 8(8) of PMLA, 2002.
According to the ED, the case pertains to large-scale financial irregularities committed by Jagdamba AMW Automotives Pvt Ltd, its director and prime accused Pushpendra Singh, along with his family members and other associates. The proceedings originated from a case registered by the CBI, BS & FC, New Delhi, which alleged that the accused conspired to cheat Canara Bank by fraudulently availing vehicle loans through forged documentation.
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The CBI registered the case under Section 13 of the Prevention of Corruption Act and Sections 120B and 420 of the Indian Penal Code, 1860, alleging criminal conspiracy and cheating. The fraudulent transactions caused a wrongful loss of approximately ₹18.32 crore to the bank, excluding interest, officials said.
ED’s investigation revealed that the accused, in connivance with others, obtained multiple vehicle loans using fake and fabricated documents, without ensuring the actual delivery of vehicles to genuine borrowers. The probe further established that the loan amounts were systematically diverted to other business ventures of the accused, transferred to bank accounts of family members, utilised for personal gains, and also used to settle outstanding liabilities.
Investigators stated that the accused ultimately siphoned off the loan proceeds taken in the names of fictitious borrowers for personal benefit, resulting in substantial financial loss to Canara Bank’s Jabalpur branch. As per ED’s findings so far, the proceeds of crime generated from the offence have been quantified at ₹18.32 crore.
In the course of the investigation, the ED, Bhopal had earlier provisionally attached movable and immovable properties worth ₹5.32 crore under the provisions of PMLA, 2002. These attachments were subsequently confirmed by the Adjudicating Authority, lending legal backing to the enforcement action.
Following this, the ED filed a prosecution complaint on March 13, 2024, before the Special PMLA Court at Jabalpur. Taking cognisance of the complaint, the court framed charges against the accused and allowed the trial to proceed in accordance with law.
Seeking restitution of the attached assets, Canara Bank moved an application under Section 8(8) of PMLA on January 9, 2025, requesting restoration of the properties to compensate for the losses suffered due to the fraud. After hearing all concerned parties, the Special PMLA Court, Jabalpur, passed its order on January 29, 2026, directing that the attached properties be restored to the defrauded bank.
As per the court’s order, the properties restored to Canara Bank have a current market value of approximately ₹45 crore, providing significant financial relief to the lender. The ED stated that the restitution reflects the agency’s commitment to ensuring recovery for victims of financial crimes while simultaneously pursuing prosecution of offenders.
Officials described the development as an important step towards reinforcing confidence in the banking system and sending a strong message against economic offences involving public funds.
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.
