The Enforcement Directorate (ED) has commenced the process of returning 78 flats, valued at over Rs20 crore, to genuine homebuyers who were allegedly swindled by the SRS Group. This restitution concerns properties from SRS Group’s projects, including SRS Pearl, SRS City, and SRS Prime, located in Gurugram.
The decision follows an order from the Appellate Tribunal, established under the Prevention of Money Laundering Act (PMLA), which authorised the ED on August 12 to return these assets to their rightful owners. The total value of the flats in question amounts to Rs20.15 crore.
The ED’s action is part of a broader investigation into the SRS Group, which began in January 2020 when the central agency attached assets worth Rs2,215 crore due to allegations of fraud. The SRS Group was accused of receiving payments for residential units but failing to duly register these properties in the names of the homebuyers. Instead, the properties remained registered under the SRS Group’s name. Following the attachment of these assets, the Adjudicating Authority of the PMLA partially confirmed the attachment. The ED’s appeal to the Appellate Tribunal was part of an ongoing legal process that also saw involvement from the Punjab and Haryana High Court and the Supreme Court. These higher courts directed the ED to conduct a meticulous verification process to ensure that the restitution of flats was made to the genuine claimants.
The ED has completed this verification and issued no objection certificates (NOCs) to facilitate the registration of these properties to the rightful owners. The verification process for additional homebuyers who have not yet received possession is ongoing, with plans to extend restitution to them as well. This case follows a recent similar action in Kolkata, where a special PMLA court ordered the restitution of assets worth Rs12 crore to investors defrauded by the Rose Valley group, a Ponzi scheme led by a film producer.
Under section 8(8) of the PMLA, properties confiscated by the central government can be restored to legitimate claimants who have suffered due to money laundering offences. The ED’s restitution process underscores its commitment to addressing fraud and ensuring justice for affected individuals.
