Kolkata | December 2, 2025 – The Directorate of Enforcement (ED), Kolkata Zonal Office, has achieved a significant milestone in its ongoing probe under the Prevention of Money Laundering Act, 2002 (PMLA), by securing the restitution of attached properties worth ₹169.47 crore in the high-profile Prakash Vanijya Private Limited bank fraud case. The case involves M/s Prakash Vanijya Pvt. Ltd. and its promoter-director Manoj Kumar Jain, accused of defrauding the Central Bank of India of ₹234.57 crore through fraudulent banking transactions and diversion of loan funds.
ED’s investigation revealed that the accused had illegally diverted bank funds after securing credit facilities on the basis of inflated financial statements and forged documentation, resulting in massive losses to the public sector bank. Following the initiation of a PMLA investigation, the Enforcement Directorate attached multiple immovable and movable properties across West Bengal and Chhattisgarh, valued at ₹199.67 crore, through four Provisional Attachment Orders. These orders were later confirmed by the Hon’ble Adjudicating Authority, reinforcing the legal foundation for asset recovery.
Judicial restitution process
Recognizing the urgent need to protect public interest and recover public sector bank funds, the ED convened several meetings with senior officials of the Central Bank of India. Subsequently, the bank filed a formal application seeking restitution of the attached properties. The Enforcement Directorate supported this application through a consent petition, enabling judicial consideration.
On 28 November 2025, the Hon’ble Chief Judge, City Sessions Court, Calcutta, allowed restitution of the attached assets to the Central Bank of India. The Court observed that the bank was entitled to legitimate recovery of dues and noted that the ED raised no objection to the restitution, subject to the fulfillment of statutory dues and deposit of any surplus before the competent authority for adjudication under PMLA.
As per the latest valuation report submitted by the Central Bank of India, the realizable value of the properties now stands at ₹169.47 crore, reflecting market-linked reassessment carried out during the restitution process.
Significance of the restitution
The restitution marks a major step in returning proceeds of financial fraud to rightful claimants, ensuring the recovery of public money and strengthening public confidence in the banking system. The ED emphasized that this outcome underscores its commitment to dismantling complex financial fraud networks and protecting the integrity of public sector banks.
Experts note that the case demonstrates the complexity and scale of contemporary financial frauds, where inflated financial statements, forged documentation, and diversion of funds are used to siphon large sums. The ED’s intervention illustrates how meticulous investigation, legal strategy, and collaboration with banks can secure restitution, even in highly sophisticated cases.
ED’s continued vigilance
An ED spokesperson stated:
“The successful restitution in the Prakash Vanijya case reaffirms our zero-tolerance policy against financial crimes. Public sector funds are sacrosanct, and any attempt to defraud the banking system will be met with decisive legal action.”
The Directorate confirmed that further investigation continues to trace any remaining proceeds of crime linked to the accused, while also identifying any other entities involved in the fraudulent network.
