The EOW had moved the application to restitute funds to depositors duped in an alleged ‘Moissanite’ stone investment scam orchestrated by M/s Platinum Hern Pvt Ltd.
However, the judge dismissed the EOW’s plea, noting that while the ED provisionally attached the demand drafts in March 2025, the action was yet to be confirmed by the Adjudicating Authority under the Prevention of Money Laundering Act (PMLA). Alternatively, relief could be granted if a trial cannot be conducted due to specific circumstances, such as the death of the accused or their abscondence as a proclaimed offender.
Mumbai: Observing that the provisional attachment of assets has not yet been confirmed by the Adjudicating Authority, a special PMLA court rejected a “premature” application filed by the Economic Offences Wing (EOW) seeking the restoration of Rs 1.75 crore attached by the Enforcement Directorate (ED) in the Rs 177-crore money laundering case linked to the Torres Jewellers Ponzi scheme. “Unless, the property vests with the Central Government, the Enforcement Directorate has no locus to give its agreement for transfer/restoration/reinstate of the said properties to any other agency,” the judge said. The court observed that the restoration of property under the PMLA can only be considered after confiscation upon the conclusion of a trial. In the present case, the court noted that neither condition was met, as charges have not been framed, no accused has been declared a proclaimed offender, and the trial is yet to commence. Rejecting the plea, the court further observed that a delay in proceedings cannot bypass statutory requirements.