The ED informs the court that asset auctions are one way to recover damages

The Enforcement Directorate (ED) claimed in an affidavit filed with the Kochi Prevention of Money Laundering Act (PMLA) court on Monday that the accused’s attached properties might be auctioned off to recoup damages suffered by a depositor of Karuvannur Service Cooperative Bank.

This occurred on the same day that Prime Minister Narendra Modi promised to reimburse the impoverished individuals who lost money in the bank fraud during a speech to an assembly in Thrissur.

The affidavit was submitted in response to a person by the name of Mahadevan, who petitioned the PMLA court to have the accused’s attached properties returned in exchange for his deposits of Rs 33.27 lakh with Karuvannur Bank.

Mahadevan claimed in his appeal that he had deposited Rs 33.27 lakh but was unable to retrieve the money because the accused’s activities had caused the bank to fail. In order for the associated properties to go up for auction and for him to get his money back that he had put, he begged the court to release them.

In his affidavit, ED special prosecutor M J Santhosh argued that the court’s approval is required before taking any further action in this respect. It is argued that even during the trial, the special court may take the petitioner’s request for the return of the property into consideration under the second proviso of section 8(8) of the PMLA. According to the affidavit, the aforementioned clause is by the Prevention of Money Laundering (Restoration of Confiscated Property) Rules.

The Enforcement Department has so far attached assets valued at Rs 105 crore as a result of its probe into the fraud. According to the agency, the petitioner experienced measurable losses as a consequence of money laundering. The petition might have realized the accused’s deposit sooner if he hadn’t obtained the revenues of his criminal activity via unlawful borrowing. According to the statement, “the accused obtained the bank deposits through illicit loans and invested in real estate and other businesses to project as untainted money.”

On May 3, the petition was scheduled for hearing. ED authorities said that the Rule’s provision came into being as a result of a 2016 change. Nevertheless, the nation has never previously used such a provision. Therefore, there are no court orders pertaining to this. As instructed by the court, we would act. According to an ED official, once attached properties are realized, they will be held for auction with the proceeds going to the distressed depositors.