Updated on: Oct 14, 2025 | 8:58 PM IST
New Delhi: In a landmark move that brings relief to hundreds of long-suffering homebuyers, the Enforcement Directorate (ED) has restituted unsold inventory valued at approximately ₹175 crore in the Royal Rajvilas (RRV) project, Udaipur, to the resolution applicant of Udaipur Entertainment World Private Limited (UEWPL). The Supreme Court has acknowledged and appreciated the ED’s efforts to restore these assets, marking a significant development in the intersection of insolvency and anti-money laundering law in India.
Restoration of Properties to Benefit Homebuyers
The restitution covers 354 flats, 17 commercial units, and 2 plots in the RRV project, ultimately benefitting around 213 homebuyers who had invested in the units and endured prolonged uncertainty for over 12 years.
A statement from the ED noted, “Since this issue involved complex legal questions concerning the interplay between the Insolvency and Bankruptcy Code (IBC), 2016 and the Prevention of Money Laundering Act (PMLA), 2002, which could have prolonged litigation, the ED adopted a proactive approach to reach a harmonious solution without compromising the objectives of the PMLA and while safeguarding the interests of the homebuyers.”
The Supreme Court, in its order dated October 10, 2025, expressed appreciation for the ED’s initiative. “We place on record our appreciation for the efforts made by the learned counsel for the parties and the ED in restoring the attached properties to secure the interests of genuine and innocent homebuyers,” the court observed.
Background of the Case
The ED initiated a money laundering investigation in 2019, following FIRs lodged by the Central Bureau of Investigation (CBI). The probe focused on allegations that Bharat Bomb, a Udaipur-based chartered accountant, along with associates, had defrauded Syndicate Bank (now Canara Bank) of ₹1,267.79 crore. The fraudulent schemes included discounting forged cheques, forging inland bills, and obtaining loans against counterfeit insurance policies between 2011 and 2016. Proceeds from these financial crimes were allegedly diverted into the Royal Rajvilas project.
During the investigation, properties worth ₹535 crore, including unsold and unregistered inventory of UEWPL, were attached by the ED under PMLA provisions.
Legal Proceedings and Resolution
The corporate debtor, UEWPL, was admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Mumbai, following petitions filed by initial homebuyers of the Royal Rajvilas project. In February 2022, the NCLT approved the resolution plan submitted by the resolution applicant and vacated the properties attached by the ED.
Following this, the matter reached the Supreme Court, which reviewed the restitution proposal. The ED verified details of 221 homebuyers and submitted a no-objection affidavit for the restitution of the attached properties. Consequently, under Section 8(8) of the PMLA, the properties, now valued at ₹175 crore, were restituted to the successful resolution applicant for the sole benefit of the genuine and innocent homebuyers.
The ED highlighted that this decision ends the plight of homebuyers who had been waiting over a decade for resolution, after investing their hard-earned savings in the project and enduring protracted litigation spanning more than seven years.
ED’s Approach and Wider Impact
This case reflects a broader strategic shift by the ED, which has increasingly focused on attaching proceeds of crime and restoring them to the rightful victims. According to the latest data reviewed by HT, the ED has restituted assets worth ₹34,580 crore to victims so far, with over ₹15,000 crore linked to high-profile fugitives such as Vijay Mallya, Nirav Modi, and Mehul Choksi.
The Royal Rajvilas restitution underscores the ED’s proactive role in ensuring that the victims of financial crimes are prioritised and that anti-money laundering measures do not unduly impede the resolution of insolvency cases. By aligning the objectives of PMLA and IBC, the ED has set a significant precedent for balancing enforcement actions with the protection of innocent stakeholders.
Key Takeaways
- ED restituted unsold inventory worth ₹175 crore to homebuyers in the RRV project, Udaipur.
- 354 flats, 17 commercial units, and 2 plots were restored to the resolution applicant under the IBC.
- Supreme Court appreciated ED’s efforts to protect the interests of 213 long-suffering homebuyers.
- Case involves fraud of ₹1,267.79 crore by Bharat Bomb and associates through forged financial instruments.
- ED has adopted a victim-centric approach, aligning anti-money laundering enforcement with insolvency resolution.
- ED has already restituted ₹34,580 crore in assets to victims, including high-profile cases of Mallya, Modi, and Choksi.
The restoration of these properties marks a milestone in India’s legal and financial ecosystem, highlighting the importance of timely intervention, coordination between enforcement agencies, and safeguarding the interests of citizens affected by corporate and financial malfeasance.
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