RB News World Latest News
Related Articles
The Enforcement Directorate has restored assets worth about Rs 100 crore to the liquidator of Pixion Media Limited and Pearl Vision Private Limited. These properties were earlier provisionally attached under money laundering as the former officials of the company had defrauded banks and embezzled their money.
How did the scam happen?
The ED investigation was started on the basis of 7 FIRs registered by the Central Bureau of Investigation. These cases were related to Prabodh Kumar Tiwari alias P.K. Tiwari and his companies – Pixion Media Private Limited, Pearl Vision Private Limited, Mahua Media Private Limited, Century Communication Limited, Pixion Vision Private Limited, Pearl Studio Private Limited, who committed bank fraud of Rs 657.11 crore. These FIRs were registered on the basis of complaints from several banks including Punjab National Bank, Indian Overseas Bank, Oriental Bank of Commerce, State Bank of India and Bank of India.
How was the fund embezzled?
The ED investigation revealed that P.K. Tiwari and his family fraudulently obtained loans and cash credit facilities from banks through fake invoices, CA certificates, insurance policies etc. Later, these funds were invested in the name of private properties and related companies by making several transactions.
ED action
On 20 December 2019, the ED raided the premises of the related companies and people under PMLA. During the investigation, several properties purchased by PK Tiwari were traced, which were in the name of his family and other companies. After this, the ED seized properties worth Rs 156.33 crore, which included commercial and residential properties, money deposited in bank accounts, etc. Later, the Adjudicating Authority of PMLA approved these seizures.
Why were the properties returned to the banks?
The aggrieved bank group had filed a case in the National Company Law Tribunal (NCLT) under the Corporate Insolvency Resolution Process (CIRP), following which a liquidator was appointed on 22 August 2019. The liquidator, on behalf of the banks (who were the legitimate claimants in the case), filed an application for restoration of assets before the Special PMLA Court (Judge Shri Shailendra Malik). The ED also accepted this request and agreed to restore the assets to the banks under PMLA.
Court Order
On 29 January 2025, the Special PMLA Court accepted the arguments of the ED and ordered the liquidator to restore assets worth Rs 100 crore. These assets will now be used to compensate the banks for their losses. The ED is further investigating the matter and other assets may also be identified.
