Sat Jan 18 10:50:38 UTC 2025: ## ED Returns ₹289.54 Crore in Properties to Depositors of Scam-Hit Bank

**Mumbai, January 18, 2025** – The Enforcement Directorate (ED) has returned immovable properties worth ₹289.54 crore to depositors of the scam-hit Pen Co-operative Urban Bank Limited. The properties, initially attached under the Prevention of Money Laundering Act (PMLA), were released following a Bombay High Court order and subsequent legal proceedings.

At least two lakh depositors and 42,000 shareholders lost money due to alleged fraud and money laundering by the bank’s office-bearers. The ED’s investigation revealed that the bank’s officials conspired with auditors to manipulate accounts, causing a loss of ₹651.35 crore. Proceeds from the crime were used to purchase properties, which were subsequently attached.

After a protracted legal battle, including a Supreme Court appeal by the ED, the agency decided to withdraw its petition in the interest of the depositors. A special PMLA court subsequently ordered the release of the properties to the Competent Authority under the Maharashtra Protection of Interest of Depositors (MPID) Act. This decision marks a significant step towards restitution for victims of the banking scam.

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