ED restitutes unsold Royal Rajvilas properties worth ₹175 crore to protect interests of 213 homebuyers after prolonged litigation.

Headnote:

The Directorate of Enforcement (ED), Jaipur Zonal Office, restituted unsold inventory of 354 flats, 17 commercial units, and 2 plots in Project Royal Rajvilas, Udaipur, valued at approximately ₹175 crore, to the Successful Resolution Applicant (SRA) of M/s Udaipur Entertainment World Pvt. Ltd., safeguarding the interests of 213 bona-fide homebuyers. The action follows protracted litigation under IBC, 2016 and PMLA, 2002 and highlights ED’s proactive approach to restorative justice.

Background:

1. The project Royal Rajvilas (RRV), Udaipur, was delayed for over 12 years, leaving 213 homebuyers without possession of purchased units.
2. Multiple FIRs and a charge sheet were filed by CBI in connection with the Syndicate Bank fraud case, where Bharat Bomb and others defrauded the bank for ₹1,267.79 crore through forged documents, discounted inland bills, and loans against forged insurance policies (2011–2016).
3. ED attached properties worth ₹535 crore, including unsold inventory of UEWPL, as proceeds of crime under PMLA, 2002.

Investigation:

1. ED scrutinized homebuyer claims and verified 221 claims submitted before the NCLT, Mumbai during the CIRP of UEWPL.
2. Identified 11 units linked to proceeds of crime, which were excluded from restitution.
3. ED coordinated with the Resolution Professional and new management of UEWPL to ensure lawful restitution of assets.

Action Taken:

1. ED submitted a No Objection for restitution of properties to the Successful Resolution Applicant (SRA) for the benefit of bona-fide homebuyers, under Section 8(8) of PMLA, 2002.
2. Following ED’s affidavit, the Hon’ble Supreme Court of India directed restitution of properties on 10.10.2025, noting that the efforts protected the rights of genuine homebuyers and commended ED’s proactive role.
3. The Supreme Court clarified that this order shall not set a precedent, and questions of law remain open for future cases.

Outcome:

1. 354 flats, 17 commercial units, and 2 plots restituted to SRA, benefitting 213 homebuyers.
2. The action brings closure to a 12-year-long delay in possession and resolves protracted litigation.
3. Demonstrates ED’s commitment to restorative justice, balancing enforcement of PMLA, 2002 with protection of victims’ rights.