Real Estate
Bombay High Court Orders ED to Donate 50% Interest to Widows and Families of Fallen Soldiers
By GeoSquare News Desk · Published 2026-01-13
In an unusual and compassionate order, the Bombay High Court has recognized the pressing need to support the widows and children of Army men who lost their lives for the country. The court directed the Enforcement Directorate (ED) to pay 50% of the interest accrued on Rs 46.5 crores to the Armed Forces Battle Casualties Welfare Fund (AFBCWF). This decision comes in the context of a complex legal battle involving the real-estate giant Shapoorji Pallonji Company Limited (SPCL) and the ED.
A division bench of Justices Ajay Gadkari and Ranjitsinha Bhonsale passed this order while dismissing appeals filed by the ED. The ED had challenged a January 17, 2019, order of an Appellate Tribunal under the Prevention of Money Laundering Act (PMLA), which directed the ED to release movable and immovable properties worth Rs 141.50 crores belonging to SPCL. This amount was paid by SPCL to one Nitesh Thakur from 2005 onwards under an agreement for acquiring at least 900 acres of land at the rate of Rs 30 lakhs per acre for a development project in the Alibaug and Pen regions near Navi Mumbai.
Thakur, a public servant, along with his brother and family members, was initially booked in a disproportionate assets case under the Prevention of Corruption (PC) Act in 2009. He had acquired several movable and immovable properties from the amount received from SPCL, including flats and high-end cars. He was also accused of duping mill workers by promising to provide homes at cheaper rates.
After the amendment in June 2009, the ED took over the probe, basing its case on the 'predicate offence' (disproportionate assets case). The ED contended that all the properties were acquired from the 'proceeds of crime' and thus initiated provisional attachment of all assets owned by Thakurs. However, Thakur informed SPCL that some of the properties, which the company was entitled to under its agreement with Thakur, were also being attached.
SPCL challenged the provisional attachment of the properties, citing its agreement and an Income Tax Assessment (ITA) order. The order clearly indicated that it had advanced Rs 141.50 crores to Thakur for acquiring lands in Alibaug and Pen. SPCL argued that Thakur was on an 'unsanctioned' leave for four years and thus was not performing any 'official or public duty'. The Appellate Tribunal accepted SPCL's contentions and ordered the release of their properties.
The ED moved the High Court, challenging the same and seeking a stay of the Appellate Tribunal's order. In 2019, the High Court, while allowing this request, ordered the ED to deposit Rs 46.5 crores (Rs 45 crores + Rs 1.5 crores) before its Registry.
By an order passed on December 23, 2025, which became available on January 8, the bench led by Justice Gadkari held that the ED could not place anything on record to show that SPCL 'bribed' Thakur or that the said money or the properties purchased from it were 'proceeds of crime'. The court upheld the Appellate Tribunal's order.
While doing so, the bench ordered the Registry to return Rs 46.5 crores to SPCL. However, regarding the interest accrued on this amount, the bench decided that 50% of the interest should be paid to SPCL and the remaining 50% to the AFBCWF.
The judgment, authored by Justice Bhonsale, highlighted that SPCL is one of the oldest companies in India and has consistently contributed to the nation's economic development and charitable works. The bench stated, 'We are inclined to issue directions to pay 50% of the accrued interest on the principal amount to the AFBCWF. We have done this in view of the dedication of the soldiers of the Armed Forces of our Country. It is a known fact that casualties are being suffered by the Indian Armed Forces while serving the Nation. There is an urgent and pressing need to provide for the families and widows of the soldiers who have lost their lives on the battlefield and in protecting the borders of the nation. In modifying the condition of refund of accrued interest, we have considered the sacrifices of the soldiers for protecting the country and borders and the difficulties faced by the widows and families of the soldiers who have sacrificed their lives for the country.'
The judges deemed it fit to transfer 50% of the interest accrued on the said FDs to the AFBCWF. They clarified, 'We do this in a manner and with an object of balancing the equities.'
With these observations, the judges dismissed the appeals filed by the ED.