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The Supreme Court has restored 213 flats in Udaipur's Royal Rajvilas project, ending a 12-year delay for over 200 homebuyers. The court closed the ED's challenge to the insolvency resolution of Udaipur Entertainment World Pvt Ltd, the original developer, praising the ED's proactive role in protecting buyers. Eleven flats linked to alleged proceeds of crime remain under provisional attachment. The case involves a INR 1,200 crore embezzlement probe against Bharat Bomb in Syndicate Bank. The Supreme Court emphasized safeguarding bona fide homebuyers while allowing ongoing ED investigations to proceed.
Homebuyers of the Royal Rajvilas project in Udaipur have received significant relief as the Supreme Court restored 213 flats that were previously attached by the Enforcement Directorate (ED). The court also closed the ED's challenge to the insolvency resolution process, which had approved a new owner for Udaipur Entertainment World Pvt Ltd (UEWPL), the original project developer, committed to completing the stalled project. This development ends a 12-year delay for over 200 buyers waiting for their dream homes. The apex court acknowledged the proactive role of the ED in protecting the interests of genuine homebuyers. Advertisement
However, provisional attachment continues for 11 flats suspected to be linked to proceeds of crime. The matter traces back to an embezzlement case of over INR 1,200 crore involving Bharat Bomb in Syndicate Bank (now Canara Bank), with fraudulent financial instruments and forged insurance policies cited in the investigation. The ED had issued multiple attachment orders, including INR 83.51 crore worth of unsold inventory from UEWPL.
UEWPL had been dragged into insolvency proceedings, and a resolution plan was approved by the Mumbai bench of the National Company Law Tribunal in early 2022. The ED contested this in court, and the case reached the Rajasthan High Court, which stayed the NCLT order, questioning its jurisdiction. The new management of UEWPL then appealed to the Supreme Court.
The apex court directed the ED to protect the interests of bona fide homebuyers who had invested in the project but were unable to take possession due to prolonged legal proceedings. Following a detailed review, the ED submitted a 'No Objection' to the Supreme Court, clearing the restoration of the attached properties for genuine buyers, except for the 11 disputed units. The court also ordered the deletion of UEWPL from the list of accused in the supplementary prosecution complaint filed by the ED.
The Supreme Court highlighted that the provisional attachment would remain for the 11 units linked to payments totaling INR 7.82 crore allegedly connected with criminal proceeds. It further clarified that if any ongoing ED investigation finds other amounts linked to proceeds of crime, appropriate action may follow. The apex court expressed appreciation for the ED's efforts in securing the rights of genuine homebuyers.
Source PTI
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