A Delhi court ordered the confiscation of PACL Ltd.'s properties, directing their transfer to the Justice RM Lodha Committee. This action, stemming from an ED probe, is to facilitate refunds for investors affected by the money laundering scheme.
A Special Court under the Prevention of Money Laundering Act (PMLA) at Rouse Avenue Courts has ordered the confiscation of properties belonging to M/s PACL Ltd. and directed that the assets be restituted and handed over to the Justice RM Lodha Committee for the benefit of investors affected by the PACL scheme.
ED Plea and Court's Directive
The order was passed by Special Judge Satish Kumar in proceedings arising from the Enforcement Directorate's money laundering investigation relating to PACL and its associated entities. The Enforcement Directorate was represented by N.K. Matta, Special Public Prosecutor, assisted by Faizan, Advocate, Prekshit Chauhan, Legal Consultant; and Atul Yadav, Assistant Director, ED.
According to the order, the matter was listed for consideration of confiscation of properties under Section 8(5) of the Prevention of Money Laundering Act, 2002, and for passing directions regarding restitution and handing over of the properties in terms of orders previously issued by the Supreme Court concerning PACL assets.
The ED had sought confiscation and restitution of properties covered by the fifth and sixth supplementary prosecution complaints filed in the case. The agency relied upon affidavits filed in support of those complaints and requested that the properties be transferred to the Justice RM Lodha Committee, which has been entrusted by the Supreme Court with overseeing the sale and disposal of PACL assets and the refund process for investors.
The Special Court recorded that, through a separate detailed order passed on the same day, it had taken cognisance of the fifth and sixth supplementary prosecution complaints filed by the Enforcement Directorate. After considering the matter, the Court ordered that the properties of the accused company M/s PACL Limited be confiscated under Section 8(5) of the PMLA.
Role of the Lodha Committee
The Court further directed that the confiscated properties be restituted and handed over to the Justice R.M. Lodha Committee in accordance with the Supreme Court's directions and on the basis of the affidavits filed by the Enforcement Directorate in support of the supplementary complaints. The Justice R.M. Lodha Committee was constituted pursuant to orders of the Supreme Court to supervise the identification, management, sale and monetisation of PACL assets and to facilitate refunds to investors who had invested in schemes operated by the company.
Over the years, the Committee has overseen the process of recovering and disposing of PACL-linked assets to generate funds for repayment to eligible investors across the country. With the present order, the properties identified in the fifth and sixth supplementary prosecution complaints will now be transferred to the Lodha Committee's control for further action in accordance with the Supreme Court's framework governing restitution and investor refunds.
The matter has been listed for further proceedings before the Special Court on July 7, 2026. (ANI)
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