The Supreme Court has commended the Enforcement Directorate (ED) for its efforts in resolving a long-standing issue concerning defrauded homebuyers, specifically in relation to the Royal Rajvilas project in Udaipur. The court acknowledged the ED's role in restituting properties, valued at approximately ₹175 crore, to these homebuyers, many of whom have been waiting for over 12 years to receive their homes.

The case originated from FIRs filed by the CBI against Bharat Bomb and others, concerning a ₹1,267.79 crore fraud against Syndicate Bank (now Canara Bank) between 2011 and 2016. The ED initiated a money laundering investigation under the Prevention of Money Laundering Act (PMLA), revealing that proceeds from the bank fraud were used to acquire Udaipur World Entertainment Pvt. Ltd. (UEWPL) and develop the Royal Rajvilas project. In 2019, the ED attached 365 unsold flats, 17 commercial units, and 2 plots belonging to the company.

Subsequently, the National Company Law Tribunal (NCLT) in Mumbai admitted UEWPL into the Corporate Insolvency Resolution Process (CIRP). In February 2022, the NCLT approved a resolution plan and vacated the ED's attachment order. The ED challenged this decision in the Rajasthan High Court, arguing that the NCLT lacked the jurisdiction to overturn an order passed under the PMLA. The High Court noted that removing the attachment could undermine the PMLA appeal and potentially lead to the disposal of property involved in money laundering before the trial concluded.

The matter then reached the Supreme Court through a Special Leave Petition. Recognizing the homebuyers' interests, the Supreme Court directed the ED to restitute the property to the affected parties. Following this directive, the ED verified the credentials of the homebuyers and proposed a settlement. The ED offered to return all properties, excluding 11 units linked to eight accused individuals or related parties, to the homebuyers and the Successful Resolution Applicant (SRA) for further construction.

In its order, the Supreme Court lauded the ED's efforts to restitute the units to the homebuyers and prevent the dissipation of the proceeds of crime by the accused. The court appreciated the ED's proactive approach in finding a resolution that protected the interests of the homebuyers without compromising the objectives of the PMLA. The Supreme Court's decision brings relief to over 200 homebuyers of the Royal Rajvilas project, whose homes were stuck for the last 12 years. The apex court also closed the probe agency's challenge to the insolvency resolution process, where the Mumbai bench of the NCLT had approved a new owner of UEWPL who is willing to complete the project.

The ED's actions in this case align with its revised strategy of focusing on attaching proceeds of crime and restoring them to the victims. This approach has resulted in the restitution of assets worth ₹34,580 crore, including over ₹15,000 crore related to fugitives like Vijay Mallya, Nirav Modi, and Mehul Choksi. The Supreme Court's praise underscores the ED's crucial role in safeguarding the interests of homebuyers and ensuring that they receive the properties they rightfully deserve.