ED Attaches ₹200 Crore Assets in Kolkata Bank Fraud Case: Understanding Laws on Attachment
Prevention of Money Laundering Act empowers ED to seize properties linked to fraud
Tribunal and courts play key role in confirming attachment orders
By Our Legal Reporter
New Delhi: December 04, 2025:
The Enforcement Directorate (ED) has attached properties worth ₹199.67 crore belonging to Prakash Vanijya Pvt. Ltd. and its promoter-director Manoj Kumar Jain in connection with a major bank fraud case. Jain allegedly defrauded the Central Bank of India of over ₹234 crore by diverting loan funds using forged documents.
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This action was taken under the Prevention of Money Laundering Act (PMLA), 2002, which empowers the ED to attach properties suspected to be proceeds of crime. The case highlights how attachment laws work in India and why they are crucial in protecting public money.
What is Attachment of Property?
Attachment refers to the legal process of seizing or freezing assets suspected to be linked with criminal activity. Under PMLA, attachment ensures that accused persons cannot dispose of or transfer properties acquired through illegal means.
- Provisional Attachment: ED can issue a provisional order for up to 180 days.
- Confirmation: The order must be confirmed by the Adjudicating Authority after hearing both sides.
- Final Confiscation: If proven as proceeds of crime, the property is confiscated by the government.
Laws Governing Attachment in India
- Prevention of Money Laundering Act (PMLA), 2002
- Section 5: Allows provisional attachment of property suspected to be proceeds of crime.
- Section 8: Adjudicating Authority confirms attachment after due process.
- Section 9: Confiscation of property after conviction.
- Income Tax Act, 1961
- Provides for attachment of assets in cases of tax evasion.
- SARFAESI Act, 2002
- Empowers banks to attach secured assets of defaulters without court intervention.
- Criminal Procedure Code (CrPC), 1973
- Sections 83–85 allow attachment of property of absconding accused.
The Kolkata Case in Detail
- Accused: Manoj Kumar Jain, promoter-director of Prakash Vanijya Pvt. Ltd.
- Fraud Amount: ₹234.57 crore defrauded from Central Bank of India.
- Method: Inflated financials, forged documents, diversion of loan funds.
- ED Action: Attached properties worth ₹199.67 crore in West Bengal and Chhattisgarh through four provisional orders.
- Restitution: ED secured restitution of attached properties worth ₹169.47 crore to protect bank interests.
Why Attachment is Important
- Protects public money: Prevents fraudsters from selling or hiding assets.
- Ensures recovery: Helps banks and financial institutions recover losses.
- Deters crime: Sends a strong message against money laundering and fraud.
- Supports investigation: Freezing assets prevents tampering with evidence.
Challenges in Attachment Cases
- Lengthy litigation: Accused often challenge attachment orders in tribunals and courts.
- Benami properties: Identifying real ownership can be complex.
- International assets: Cross-border fraud requires cooperation with foreign agencies.
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Other Major Attachment Cases
- Anil Ambani Case: ED attached properties worth ₹1,452 crore linked to alleged bank loan fraud.
- Multiple Kolkata Cases: ED has attached assets in several money laundering probes, including trade-based frauds.
Conclusion
The attachment of ₹200 crore assets in Kolkata underlines the importance of strong legal frameworks like PMLA in tackling financial crimes. By freezing properties linked to fraud, the ED ensures that public money is safeguarded and justice is served.
As India’s financial system grows more complex, attachment laws will continue to play a vital role in protecting banks, investors, and ordinary citizens from fraudsters.
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