- Assets worth Rs 55.85 crore restored to Era Infra Engineering's Successful Resolution Applicant
- Era Infra secured Rs 650 crore loan from UCO Bank, with Rs 250.70 crore allegedly siphoned off
- CBI filed FIR in 2018 against Era Infra, promoter, and others for bank fraud and corruption
In a significant step towards restoring the Proceeds of Crime (POC) to rightful claimants, the Directorate of Enforcement (ED) has restored assets valued at Rs 55.85 crore to the Successful Resolution Applicant in the case of Era Infra Engineering Limited.
The restoration comes in connection with a bank fraud case involving loans worth Rs 650 crore availed by Era Infra Engineering Limited from UCO Bank, of which Rs 250.70 crore was allegedly siphoned off. The CBI had registered an FIR (RCBD1/2018/E/0007) on April 12, 2018 against the company, its promoter Hem Singh Bharana, and others under IPC sections 120-B, 420, 467, 468, 471 and provisions of the Prevention of Corruption Act.
ED's probe revealed that the company fraudulently diverted substantial loan amounts to its group entities in violation of the loan agreement. The account was subsequently classified as Non-Performing Asset (NPA) on July 7, 2013.
During the course of the investigation, ED had provisionally attached assets under three separate orders issued in 2019 and 2020, which included two Tunnel Boring Machines, bank account balances, and other movable and immovable properties. A Prosecution Complaint seeking confiscation of these assets was filed on March 3, 2021.
With the company undergoing resolution, the National Company Law Tribunal (NCLT) approved a resolution plan by SA Infrastructure Consultants Pvt. Ltd. on June 11, 2024. Subsequently, the new management filed an application before the Hon'ble Special Court, New Delhi, seeking restoration of the attached properties in line with the approved plan.
Considering the facts and the resolution process, the ED agreed to restore the assets, and the Special Court ordered the return of properties worth Rs 55,85,96,157 to the new management of Era Infra Engineering Ltd.
This move underscores the ED's commitment to ensuring that illicit assets are recovered and repatriated to legitimate stakeholders. The agency reaffirmed its dedication to fighting financial fraud and safeguarding public funds through continued enforcement action under the Prevention of Money Laundering Act (PMLA), 2002.
