The Hon’ble Special Court (PMLA), Mumbai, vide its order dated 04.08.2026, has directed the return of attached immovable properties worth ₹393.79 crore in the case of M/s Nakoda Limited and others to the “genuine, legitimate claimants”—a consortium of 13 banks led by Canara Bank.
Hon’ble Special Court (PMLA), Mumbai allows return of attached properties worth Rs 393.79 crore under PMLA, 2002
The Hon’ble Special Court (PMLA), Mumbai, by order dated 04.08.2026, ordered return of the attached immovable properties worth Rs. 393.79 crores to the “genuine legal claimants”.
According to the facts of the case, the ED, Surat Sub-Zonal Office initiated an investigation under the Prevention of Money Laundering Act, 2002 (PMLA) against M/s Nakoda Limited and others for their involvement in money laundering and generation of proceeds of crime. The investigation under the PMLA revealed that M/s Nakoda Limited (a company owned/controlled by Babulal Gumanmal Jain and Devendra Babulal Jain and others) defrauded a consortium of banks to the tune of approximately ₹828 crore by systematically transferring funds through group entities.
The investigation revealed that a consortium of 13 banks led by Canara Bank issued letters of credit (LCs) to M/s Nakoda Limited based on invoices submitted by its vendors. Subsequently, the vendors discounted these LCs through fake bills of exchange and invoices accepted by Nakoda Limited, without actually supplying the goods. A total of 1,212 LCs worth ₹4,204.25 crore were opened in favour of vendors of M/s Nakoda Limited, out of which 202 domestic LCs amounting to ₹827.98 crore lapsed due to non-payment by Nakoda Limited.
During the investigation under the PMLA, 2002, immovable properties worth ₹375.71 crore were provisionally attached in 2018 and ₹18.08 crore in 2019. Both attachments were subsequently confirmed by the Hon’ble Adjudicating Authority. Additionally, a Prosecution Complaint and a Supplemental Prosecution Complaint were filed before the Special Court (PMLA), Mumbai, for the offense of money laundering against M/s Nakoda Limited and others, and a prayer for confiscation of the attached properties as proceeds of crime was made before the Hon’ble Court.
In this case, the Hon’ble National Company Law Tribunal (NCLT), Ahmedabad, initiated a Corporate Insolvency Resolution Process (CIRP) against M/s Nakoda Limited. Upon the failure of the resolution process, liquidation proceedings were initiated. Subsequently, the liquidator filed an application before the Hon’ble Special Court (PMLA), Mumbai, seeking restoration of the attached assets. Keeping in mind the objective of returning/restoring the proceeds of crime to the genuine legitimate claimants under the PMLA, the ED did not raise any objection before the Hon’ble Special Court (PMLA), Mumbai, regarding the release of the attached assets. Based on the above submissions by the ED, the Hon’ble Special Court (PMLA), Mumbai, passed an order on 04.08.2026, releasing the attached immovable properties valued at ₹393.79 crore to the liquidator for further delivery to the genuine legitimate claimants.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.