ED restitutes property worth Rs 1.34 Cr to IDBI Bank in Kamal Kalra money-laundering case, restoring Proceeds of Crime.

Headnote:

The Directorate of Enforcement (ED), Delhi Zonal Office, successfully restituted immovable property valued at Rs 1.34 crore to IDBI Bank, the rightful claimant, in connection with its ongoing investigation into Kamal Kalra. The case, triggered by an FIR filed by Bank of Baroda, involves 59 account holders and unknown bank officials, accused of remitting funds abroad under the guise of import transactions without actual imports, using forged documents. ED, under the Prevention of Money Laundering Act (PMLA), 2002, issued seven Provisional Attachment Orders attaching Rs 69 crore in assets and filed five prosecution complaints before the Special Court. Following a submission for restitution to the bonafide claimant, the Hon’ble Additional Session Judge ordered release of the attached property to IDBI Bank, marking a key milestone in ED’s efforts to return Proceeds of Crime to legitimate claimants.

Background:

ED’s investigation uncovered that the accused, in collusion with hawala operators and businessmen, diverted funds abroad to Hong Kong, SAR China, and Dubai under the pretext of advance import remittances and software imports, without executing actual imports. Fake documents were submitted to banks to legitimize the transactions. ED issued Provisional Attachment Orders and filed prosecution complaints to secure recovery of illicit funds. Recognizing PMLA’s objective to restore Proceeds of Crime (POC) to rightful owners, ED petitioned the Hon’ble Additional Session Judge for release of attached property to IDBI Bank, a bonafide claimant.

Conclusion:

The restitution of property worth Rs 1.34 crore to IDBI Bank demonstrates ED’s commitment to returning Proceeds of Crime to legitimate claimants while combating financial crimes. The move reinforces transparency, accountability, and ED’s proactive role in protecting victims of money-laundering offenses. The case remains under active investigation, and ED continues efforts to trace, attach, and restitute assets linked to illicit activities.

Case Details:

Agency: Directorate of Enforcement (ED), Delhi Zonal Office

Date of Restitution: 07.10.2025

Claimant: IDBI Bank Ltd.

Accused: Kamal Kalra and 59 account holders of firms/companies, other unknown bank officials

FIR Filed By: Bank of Baroda

Acts Invoked: Prevention of Money Laundering Act, 2002; IPC Sections; Prevention of Corruption Act, 1988

Amount Involved: Property worth Rs 1.34 crore; assets attached Rs 69 crore

Judicial Authority: Hon’ble Additional Session Judge

Significance: Restitution of Proceeds of Crime to legitimate claimant under PMLA