24 News Update Udaipur,: In a landmark development for hundreds of aggrieved homebuyers, the Directorate of Enforcement (ED), Udaipur (under Jaipur Zonal Office) has successfully restituted unsold inventory worth ₹175 crore belonging to Project Royal Rajvilas (RRV) in Udaipur.
The restored assets include 354 flats, 17 commercial units, and 2 plots, handed back to the Successful Resolution Applicant (SRA) of M/s Udaipur Entertainment World Private Limited (UEWPL) under the Insolvency and Bankruptcy Code (IBC) 2016, ultimately benefiting 213 genuine homebuyers who had waited more than 12 years for possession.
Background: The Syndicate Bank Fraud Link
The case originates from the Syndicate Bank fraud, where Bharat Bomb and others defrauded the bank (now Canara Bank) of ₹1,267.79 crore between 2011 and 2016 through forged cheques, fake bills, and counterfeit insurance policies.
24 News Update The ED, during its investigation, attached assets worth ₹535 crore, including unsold inventory of ₹83.51 crore from UEWPL, via Provisional Attachment Order (PAO) No. 05/2019 dated 02 April 2019.
IBC Proceedings and Jurisdictional Challenges
In April 2021, the National Company Law Tribunal (NCLT), Mumbai, admitted UEWPL into Corporate Insolvency Resolution Process (CIRP) following a petition filed by homebuyers under Section 7 of IBC 2016.
The NCLT approved a resolution plan on 24 February 2022, vacating the ED’s 2019 attachment order — even though the ED was not made a party to the proceedings.
24 News Update The Rajasthan High Court later stayed this NCLT order on 6 July 2023, holding that NCLT lacked authority to overrule an attachment issued under Section 8 of PMLA 2002. The stay was vacated on 18 September 2024, but reinstated on 28 March 2025, after the High Court accepted ED’s plea that it had been excluded and that jurisdictional concerns remained unresolved.
Supreme Court’s Mediation and Consensus
The new management of UEWPL then moved the Supreme Court of India (SLP No. 10734/2025), challenging the Rajasthan High Court’s March 2025 order.
Recognizing the prolonged suffering of homebuyers, the Supreme Court directed both parties to reach a consensus ensuring protection for bona fide investors whose funds had been locked for over a decade.
24 News Update Acting on the Supreme Court’s directive, the ED coordinated with the Resolution Professional and UEWPL’s management to verify buyer claims admitted by NCLT.
After careful scrutiny, the ED submitted a No Objection for restitution of attached properties to genuine homebuyers and the SRA — excluding 11 units linked to 8 buyers associated with Proceeds of Crime (PoC) worth ₹8.65 crore.
Supreme Court’s Order and Final Outcome
24 News Update On 10 October 2025, the Supreme Court accepted the ED’s affidavit and ordered restitution of attached assets worth about ₹175 crore under Section 8(8) of PMLA 2002, benefiting 213 genuine homebuyers.
The Court clarified that the judgment was based on the unique facts of this case, would not serve as a precedent, and left broader legal questions between IBC and PMLA open.
24 News Update The apex court also commended the ED’s balanced and humane approach, stating:
“We place on record our appreciation for the efforts made by the learned counsel for the parties and the Directorate of Enforcement in restoring the attached properties to secure the interests of genuine and innocent homebuyers.”
Restorative Justice and Public Confidence
24 News Update This decision marks a significant step in Udaipur’s real estate landscape, combining financial accountability with public welfare.
By verifying 221 homebuyer claims, maintaining transparency, and ensuring that innocent investors receive justice, the ED demonstrated a model of restorative enforcement that goes beyond punishment to deliver tangible relief.
Key Highlights
Project: Royal Rajvilas (RRV), Udaipur
Developer: M/s Udaipur Entertainment World Private Limited
Restituted Value: ₹175 crore
Beneficiaries: 213 homebuyers
Properties Returned: 354 flats, 17 commercial units, 2 plots
Dispute Duration: Over 12 years
Legal Frameworks: PMLA 2002 and IBC 2016
24 News Update The case stands as a milestone for Udaipur, underscoring how coordinated action between regulatory agencies and judicial forums can resolve complex financial disputes while protecting citizens’ trust and upholding the spirit of justice.
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