Syndicate Bank Fraud Case: SC Lauds Enforcement Agencies For Restituting Properties To Homebuyers

Last Updated:October 14, 2025, 12:32 IST

The case stems from FIRs filed by CBI against accused Bharat Bomb and others for defrauding Syndicate Bank between 2011 and 2016

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In a landmark decision, the Supreme Court of India has commended the Enforcement Directorate (ED) for its efforts to restitute properties to innocent homebuyers affected by a Rs 1,267.79 crore fraud case involving Syndicate Bank (now Canara Bank).

The case, centered around fraudulent activities orchestrated by Bharat Bomb and associates, has seen a complex legal journey across multiple forums. The Supreme Court’s ruling applauded the ED’s balanced approach in addressing money laundering concerns under the Prevention of Money Laundering Act (PMLA), 2002.

What is The Syndicate Bank Fraud?

The case stems from First Information Reports (FIRs) filed by the Central Bureau of Investigation (CBI) against Bomb and others for defrauding Syndicate Bank between 2011 and 2016. The CBI’s charge sheet revealed that the accused, through companies and firms held in their names or those of family members and associates, misappropriated Rs 1,267.79 crore. These proceeds of crime were allegedly used to acquire M/s Udaipur World Entertainment Pvt. Ltd., the developer of the Royal Rajvilas project, and to fund its development. The dispute does not involve the project’s homebuyers but focuses on the fraud committed against the bank.

ED’s Investigation and Property Attachment

The ED launched an investigation under the PMLA, 2002, registering an Enforcement Case Information Report (ECIR) on July 11, 2016, based on scheduled offences under sections 120B, 420, 467, 471, and 472 of the Indian Penal Code (IPC) and sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988. On April 2, 2019, the ED issued a Provisional Attachment Order (PAO No. 05/2019), attaching 365 unsold flats/units, 17 commercial units, and two plots owned by the petitioner company. This attachment was confirmed by the Adjudicating Authority (PMLA), New Delhi, on September 19, 2019, under Original Complaint No. 1138/2019.

Insolvency Proceedings and NCLT’s Role

M/s Udaipur World Entertainment Pvt. Ltd., the corporate debtor, was admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Mumbai, on April 16, 2021, following a petition by homebuyers led by Anup Jain under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. On February 24, 2022, the NCLT approved the company’s resolution plan and vacated the ED’s attachment order, prompting a jurisdictional dispute. The ED argued that the NCLT lacked authority to set aside an order under Section 8 of the PMLA, 2002.

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