After 12 Years of Waiting, Homebuyers Finally Get Relief: ED Restitutes Unsold Inventory Worth Rs 175 Crore

ED successfully restituted unsold inventory including 354 flats, 17 commercial units and 2 plots in Project Royal Rajvilas in Udaipur. The total value of the restituted property is around Rs 175 crores."The present restitution brings an end to the plight of 213 innocent homebuyers who had been suffering for over 12 years and it has paved the way for completion of the project and finally handing over the completed units to these homebuyers," ED said on Tuesday.The Supreme Court has appreciated the efforts of the Enforcement Directorate restoring the attached properties to secure the interests of genuine and innocent home buyers in a money laundering probe revolving around bank fraud case.“Lastly, we place on record our appreciation for the efforts made

by the learned counsel for the parties and the DoE in restoring the attached properties to secure the interests of genuine and innocent home buyers," said the division bench headed by Justice Sanjay Kumar.ED's money laundering case stems from bunch of FIRs and a chargesheet filed in a bank fraud case filed by CBI against Bharat Bomb and others who had defrauded public sector banks upto Rs 1267.9 crores.After taking over the case, ED had attached properties worth Rs 535 crores including proceeds of crime to the tune of Rs 83.51 crores. Attachment included unsold inventory of Udaipur Entertainment World Private Limited.After ED carried out the attachment in April 2019, multiple litigations were filed across legal forums.The Corporate debtor in this case, Udaipur Entertainment World Private Limited, got admitted to Corporate Insolvency Resolution Process by NCLT filed by initial set of homebuyers in Project Royal Rajvilas. Subsequently NCLT vacated ED's provisional attachment order."It is pertinent to mention that ED was not made a party in the proceedings before the NCLT, Mumbai," ED said in a statement.In February 2022, Rajasthan High Court stayed the operation of the order of NCLT on the grounds it has no jurisdiction to set aside the order passed by Adjudication Authority (PMLA).On 28th March the Rajsthan High Court restored the earlier interim stay order by observing the single bench had vacated its interim order dated 06/07/2023 of stay on the order dated 24/02/2022 of the NCLT, Mumbai without taking into consideration the serious issue of the jurisdiction of the NCLT raised by the Directorate of Enforcement and that the ED suffered the order without being impleaded as a party in the proceedings before the NCLT.The new management of Udaipur World Entertainment World Private Limited then approached the Supreme Court of India challenging the order of the Rajasthan High Court. "In the said SLP, the Supreme Court of India directed both parties to arrive at a consensus so as to protect the interest of the bona-fide homebuyers, who had invested their money in the project and could not get possession of their units/flats, due to aforesaid legal proceedings pending before different judicial forums," ED said. In view of the directions of the Supreme Court to protect the interest of the bona-fide homebuyers, ED approached the Resolution Professional and new management of UEWPL seeking the details of all the homebuyers whose claims were admitted before the NCLT, Mumbai."ED scrutinised the details of the homebuyers and submitted a No Objection before the Apex Court for restitution of the attached properties for benefit of bona-fide homebuyers except 11 flats/ units pertaining to 8 homebuyers (having a total consideration value of Rs. 8.65 Crore) which were identified to be connected with POC," said ED in a statement.The anti money laundering federal probe agency claimed it has taken a "proactive approach to arrive at a harmonious solution without compromising the objective of the PMLA, 2002 and interest of the 213 homebuyers who were suffering due to the prolonged litigations. ED verified the details of 221 homebuyers and submitted a No Objection in restitution of the attached properties to SRA/ homebuyers except 8 homebuyers"."The Supreme Court has passed the order on the peculiar facts of the case without going into the merits and has also observed that this shall not be treated as a precedent and the questions of law shall remain open to be decided in an appropriate case," the ED said."The Supreme Court in the said order dated 10.10.2025 has lauded the approach and efforts made by ED in restoring the attached properties to secure the interest of the genuine and innocent homebuyers," said ED.