Mumbai Court Restores ₹952 Crore Vadraj Cement Property in IL&FS Case
The Mumbai Special Court (PMLA) has restored properties worth ₹952 crore of Vadraj Cement to Nuvoco Vistas Corporation Ltd., a subsidiary of the Nirma Group, following an investigation by the Enforcement Directorate (ED).
Vadraj CementEnforcement DirectorateIlfs CaseNuvoco Vistas Corporation LtdSpecial Court PmlaReal Estate MumbaiJun 29, 2025
The ED, in a statement on Saturday, said this move is in continuation of its efforts to return properties to their rightful owners and enable financial institutions to monetise attached or seized assets.
The ED, Mumbai Zonal Office, had initiated an investigation under the Prevention of Money Laundering Act (PMLA), 2002, against Infrastructure Leasing & Financial Services Ltd. (IL&FS), its group companies, and other associated entities for their role in the generation and laundering of proceeds of crime (POC).
During the course of the investigation, it was revealed that Vadraj Cement Limited (formerly ABG Cement Ltd.), a group company of ABG, had availed financial assistance from IL&FS Financial Services Ltd. (IFIN), which was later classified as non-performing. The investigation established that loans amounting to Rs 952 crore were fraudulently obtained and constituted proceeds of crime.
Accordingly, ED provisionally attached the immovable properties of Vadraj Cement Ltd., including its Surat Cement Plant, on January 21, 2020. The attachment was confirmed by the Adjudicating Authority on August 5, 2021. A prosecution complaint for the offence of Money Laundering was also filed in the matter before the Special Court (PMLA), Mumbai, praying for the confiscation of properties attached as POC.
The Punjab National Bank was the major lender to Vadraj Cement Ltd. with an admitted claim of Rs 2,122 Crore. The defunct cement company's other major lenders include Union Bank (Rs 1,620 Crore), Indian Overseas Bank (Rs 1,419 Crore), Central Bank of India (Rs 1,391 Crore) and JC Flower ARC (Rs 677 Crore).
Subsequently, M/s Nuvoco Vistas Corporation Ltd., a subsidiary of the Nirma Group and the Successful Resolution Applicant under the Insolvency and Bankruptcy Code, 2016 (IBC), filed an application before the Special Court (PMLA), Mumbai seeking restoration of the attached property to facilitate implementation of the resolution plan approved by the Hon'ble National Company Law Tribunal (NCLT), Mumbai on April 1, 2025.
As part of the resolution plan, Nuvoco Vistas Corporation Ltd. is set to pay Rs 1,706 crore to financial creditors for acquiring Vadraj Cement Ltd.
In light of the PMLA's objective to restore POC to bona fide and legitimate claimants, the ED submitted its no-objection before the Additional Sessions Judge for the release of the attached property.
Following ED's submission, the court passed an order on June 25, 2025, directing restitution of the immovable properties to the bona fide claimant.
The Special Court (PMLA), Mumbai, vide its order in PMLA Special Case No. 6/2019, has allowed the said application and directed the restoration of the attached property to Nuvoco Vistas Corporation Ltd. under Sections 8(8) and 8(7) of the PMLA read with Rule 3A of the PML (Restoration of Property) Rules, 2016.
The Court has further directed the Applicant to submit an undertaking to return or restore the property or its value as may be directed in future. The Court has also instructed the ED to prepare a detailed inventory of the property prior to handing over possession. The restoration order pertains solely to the attachment of Rs. 952 Crore arising out of the investigation made by the Mumbai Zonal Office.
Frequently Asked Questions
What is the IL&FS case?
The IL&FS case involves the investigation and prosecution of Infrastructure Leasing & Financial Services Ltd. (IL&FS) and its associated entities for financial irregularities and money laundering.
Who is the Enforcement Directorate (ED)?
The Enforcement Directorate (ED) is a law enforcement agency in India responsible for investigating financial crimes and enforcing the Prevention of Money Laundering Act (PMLA).
What properties were restored in this case?
Properties worth ₹952 crore, including the Surat Cement Plant, were restored to Nuvoco Vistas Corporation Ltd., a subsidiary of the Nirma Group, following an ED investigation and court order.
What is the role of the Special Court (PMLA) in this case?
The Special Court (PMLA) is responsible for hearing cases related to the Prevention of Money Laundering Act. In this case, it approved the restoration of the attached properties to Nuvoco Vistas Corporation Ltd.
How much will Nuvoco Vistas Corporation Ltd. pay for acquiring Vadraj Cement Ltd.?
Nuvoco Vistas Corporation Ltd. is set to pay Rs 1,706 crore to financial creditors for acquiring Vadraj Cement Ltd. as part of the resolution plan under the Insolvency and Bankruptcy Code (IBC).
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