PMLA Court Restores ₹952 Crore Property to Nuvoco Vistas Corporation Ltd
A special PMLA court in Mumbai has allowed the restoration of assets worth ₹952 crore, previously attached by the Enforcement Directorate (ED) in a money laundering case against IL&FS and its associated entities. The property, a Surat-based cement plant, will now be restored to Nuvoco Vistas Corporation Ltd.
PmlaEnforcement DirectorateNuvoco Vistas Corporation LtdIlfsMoney LaunderingReal Estate MumbaiJun 29, 2025
The Mumbai zonal office of the agency initiated an investigation under the PML Act against IL&FS and its associated entities for their alleged involvement 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). This financial assistance was later declared as a non-performing asset. The investigation established that loans amounting to ₹952 crore were obtained fraudulently and were identified as POC.
Accordingly, the immovable properties of Vadraj Cement Ltd, including its cement plant in Surat, were provisionally attached by the ED on January 21, 2020. The attachment was confirmed by the Adjudicating Authority on August 5, 2021. A prosecution complaint or charge sheet in the money laundering case was also filed before the special PMLA court in Mumbai, seeking the confiscation of the properties attached as POC.
Punjab National Bank was the major lender to Vadraj Cement Ltd with an admitted claim of ₹2,122 crore. The defunct cement company’s other major lenders include Union Bank (₹1,620 crore), Indian Overseas Bank (₹1,419 crore), Central Bank of India (₹1,391 crore), and JC Flower ARC (₹677 crore). Subsequently, Nuvoco Vistas Corporation Ltd, a subsidiary of the Nirma Group and the successful resolution applicant under the IBC, filed an application before the special PMLA court seeking the restoration of the attached property to facilitate the implementation of the resolution plan approved by the National Company Law Tribunal, Mumbai, on April 1, 2025.
Under the scheme approved by the NCLT, Nuvoco Vistas Corporation Ltd will pay ₹1,706 crore to Vadraj Cement’s financial creditors in lieu of its acquisition of the defunct company. Considering the intent of the PMLA to restitute or restore the POC to bonafide legitimate claimants, the ED submitted no objection before the special court for the release of the property to the bonafide legitimate claimants.
Based on the ED’s NOC, the special court on June 25 passed an order to restitute the attached immovable properties to the bonafide claimants - Nuvoco Vistas Corporation Ltd, subject to the filing of an undertaking to return or restore the property or its value as may be directed in the future. The court has also instructed the ED to prepare a detailed inventory of the property prior to handing over its possession to the successful resolution applicant.
Frequently Asked Questions
What is the PMLA (Prevention of Money Laundering Act)?
The PMLA is a law in India aimed at preventing money laundering and to provide for the confiscation of property derived from, or involved in, money-laundering.
Why were the assets of Vadraj Cement Limited attached?
The assets were attached because Vadraj Cement Limited, a group company of ABG, had availed financial assistance from IL&FS Financial Services Ltd, which was later declared as a non-performing asset. The investigation revealed that loans amounting to ₹952 crore were obtained fraudulently and identified as proceeds of crime (POC).
Who is Nuvoco Vistas Corporation Ltd?
Nuvoco Vistas Corporation Ltd is a subsidiary of the Nirma Group and the successful resolution applicant under the Insolvency and Bankruptcy Code (IBC). They have taken over the defunct Vadraj Cement Limited through a resolution process.
How much will Nuvoco Vistas Corporation Ltd pay to Vadraj Cement’s financial creditors?
Nuvoco Vistas Corporation Ltd will pay ₹1,706 crore to Vadraj Cement’s financial creditors in lieu of its acquisition of the defunct company.
What is the role of the Enforcement Directorate (ED) in this case?
The ED initiated the investigation under the PML Act, identified the proceeds of crime, and provisionally attached the immovable properties of Vadraj Cement Ltd. They also submitted no objection to the special PMLA court for the release of the property to the bonafide claimants.
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