Mumbai: PMLA Court Orders Restoration Of ₹393.79 Crore ED-Attached Assets In Alleged Nakoda Bank Fraud Case
· Free Press Journal
Mumbai, August 6, 2026: A Special Court under the Prevention of Money Laundering Act (PMLA) in Mumbai has ordered the restoration of immovable properties worth Rs 393.79 crore attached by the Enforcement Directorate (ED) in connection with the alleged Rs 828-crore Nakoda Limited bank fraud case, clearing the way for their transfer to the company's liquidator.
Court Allows Restoration
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In an order dated August 4, the Special Court allowed the release of the attached properties after the ED informed it that it had no objection to their restoration, stating that the objective of the Prevention of Money Laundering Act is to facilitate restitution of the proceeds of crime to legitimate claimants.
The ED's money laundering probe stems from allegations that Nakoda Limited, its promoters Babulal Gumanmal Jain, Devendra Babulal Jain and others defrauded a consortium of 13 banks led by Canara Bank of about Rs 828 crore by fraudulently obtaining Letters of Credit (LCs) using fabricated trade documents for transactions in which no goods were actually supplied.
According to the agency, the consortium issued 1,212 LCs worth Rs 4,204.25 crore in favour of the company's vendors. Of these, 202 LCs amounting to Rs 827.98 crore devolved after Nakoda Limited allegedly failed to honour the payment obligations.
Assets Attached By ED
As part of the investigation, the ED attached immovable properties worth Rs 375.71 crore in 2018 and another Rs 18.08 crore in 2019 through separate provisional attachment orders. Both attachments were subsequently confirmed by the Adjudicating Authority, following which the agency filed prosecution complaints before the Special PMLA Court seeking confiscation of the assets as alleged proceeds of crime.
Liquidator To Receive Properties
Meanwhile, insolvency proceedings were initiated against Nakoda Limited before the National Company Law Tribunal (NCLT), Ahmedabad. After the corporate insolvency resolution process failed, the company was ordered into liquidation, prompting the liquidator to approach the Special PMLA Court for restoration of the attached properties.
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