The Enforcement Directorate (ED) has facilitated the return of ₹3.82 crore to the Karnataka State Waqf Board, which had been allegedly swindled from them. The ED has called this a significant move in restoring the proceeds of crime to the rightful claimants. On July 1, 2025, the ED facilitated the release of the entire amount, handing over a banker's cheque of ₹3.82 crore to Jeelani H. Mokashi, CEO of the Karnataka State Waqf Board.

The case originated from a First Information Report (FIR) filed with the police against two officials from Vijaya Bank (now merged) and Syed Siraj Ahmed, a first division assistant at the Karnataka State Waqf Board. Allegations stated that large sums of money intended for fixed deposits were fraudulently diverted using fictitious accounts. The ED's investigation revealed that the Waqf Board had issued two cheques for ₹4 crore to open fixed deposit accounts at Vijaya Bank. However, this money was siphoned off and transferred to fictitious entities. Further, ₹4 crore was transferred to a company named Verkeys Realities Pvt. Ltd., which then used ₹1.1 crore to purchase a high-end car from Ghatge Motors Pvt. Ltd., and ₹2.72 crore was transferred to the account of another company named Ajay Sharma Trading Corporation. The ED issued a provisional attachment order (PAO) totaling ₹3.82 crore.

In March 2017, the ED filed a prosecution complaint (PC) before the Special PMLA court in Bengaluru against six individuals and entities, including Verkeys Realities Pvt. Ltd. The ED did not raise any objections when the Additional Sessions judge considered releasing the funds to the Karnataka State Waqf Board, recognizing them as the rightful claimant in the case.

The ED's action aligns with the Prevention of Money Laundering Act (PMLA) and its core objective of ensuring the restitution of the proceeds of crime to legitimate victims. The agency said the issuance of the banker's cheque on July 1st was a significant step in the ED's ongoing mission to restore misappropriated funds to those who have been wronged. This release underscores the ED's commitment to ensuring justice for victims of financial crimes and its dedication to combating money laundering, ensuring that the proceeds of crime are returned to their rightful owners. The restitution also highlights the ED's increasing efforts to crack down on financial irregularities involving public institutions, emphasizing the need for tighter controls in handling institutional funds.