ED Secures Restitution of Properties Worth ₹169.47 Crore in Prakash Vanijya Bank Fraud Case.

Headnote:

The Directorate of Enforcement (ED), Kolkata has secured restitution of attached properties valued at ₹169.47 crore to the Central Bank of India in a major bank fraud case involving M/s Prakash Vanijya Private Limited and its Promoter-Director, Manoj Kumar Jain. The accused allegedly defrauded the Central Bank of India by diverting loan funds obtained through forged documents and inflated financial statements, causing a loss of ₹234.57 crore. The City Sessions Court, Calcutta allowed restitution on 28.11.2025, enabling the bank to recover its dues from the attached assets.

Background:

• ED initiated an investigation under PMLA, 2002 against M/s Prakash Vanijya Private Limited and its promoter Manoj Kumar Jain for defrauding the Central Bank of India.

• Credit facilities were obtained by submitting inflated balance sheets, forged documents, and false financial statements.

• Loan funds were diverted through fraudulent transactions, causing a loss of ₹234.57 crore to the bank.

• ED attached properties worth ₹199.67 crore through four Provisional Attachment Orders covering assets in West Bengal and Chhattisgarh.

• These attachments were confirmed by the Hon’ble Adjudicating Authority under PMLA.

ED’s Observations & Court Proceedings:

• ED held consultations with senior officials of Central Bank of India to ensure recovery of public funds.

• The Central Bank of India thereafter filed an application seeking restitution of attached properties.

• ED supported the application by filing a consent petition, enabling judicial evaluation of the bank’s claim.

• On 28.11.2025, the Hon’ble Chief Judge, City Sessions Court, Calcutta ordered restitution, holding that:

– The bank is legally entitled to recover dues from the attached properties.

– ED has no objection provided that recoverable dues are satisfied.

– Any surplus value must be deposited before the competent authority for PMLA adjudication.

Valuation of Properties:

• As per a fresh valuation report obtained by the Central Bank of India:

– Current realizable value: ₹169.47 crore

– The reassessment reflects updated market-linked valuation at the time of restitution.

Significance of the Restitution:

• Ensures recovery of public sector bank funds lost due to fraudulent diversion.

• Demonstrates ED’s commitment to dismantling complex financial fraud networks.

• Affirms the role of PMLA in protecting public interest and safeguarding financial institutions.

• Enables restoration of proceeds of financial crime to the rightful claimant — the Central Bank of India.