Court orders restoration of assets worth Rs 952 crore in IL&FS case

Mumbai, June 28 (IANS) In a major development in the IL&FS money laundering case, the Special Court under the Prevention of Money Laundering Act (PMLA) in Mumbai has ordered the restoration of immovable assets worth Rs 952 crore to Nuvoco Vistas Corporation Ltd.

The order, dated June 25, follows a no-objection submission by the Enforcement Directorate (ED), allowing the company to proceed with the implementation of its resolution plan for Vadraj Cement Ltd, the ED said in a statement on Saturday.

The ED had earlier attached Vadraj Cement’s Surat-based plant in January 2020, after investigations revealed that the company, formerly ABG Cement Ltd, had fraudulently obtained loans worth Rs 952 crore from IL&FS Financial Services Ltd. These loans were later classified as non-performing assets. The attachment was confirmed by the Adjudicating Authority in August 2021, and a prosecution complaint was filed seeking confiscation.

Nuvoco Vistas, a subsidiary of the Nirma Group, had emerged as the successful resolution applicant under the Insolvency and Bankruptcy Code. Its resolution plan, approved by the National Company Law Tribunal (NCLT) on April 1, 2025, involves a payment of Rs 1,706 crore to financial creditors in exchange for acquiring Vadraj Cement. The company subsequently filed an application before the Special Court seeking restoration of the attached property to facilitate the resolution plan’s execution.

Taking into account the objective of the PMLA to restore proceeds of crime to legitimate claimants, the ED submitted that it had no objection to the release of the attached assets, it said. The court, satisfied with the submission, directed the restoration of the property under Sections 8(7) and 8(8) of the PMLA, read with Rule 3A of the PML (Restoration of Property) Rules, 2016.

The court also instructed Nuvoco Vistas to provide an undertaking to return or restore the property or its value if required in the future. The ED has been asked to prepare a detailed inventory before handing over possession, the statement said. This decision is seen as a significant step in enabling financial institutions to recover dues and in ensuring that productive assets are returned to legitimate stakeholders through lawful means.

--IANS

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