CHENNAI: The Enforcement Directorate (ED) has restituted properties worth Rs 238.90 crore, with a current market value of more than Rs 800 crore, in the Neomax Properties money laundering case, paving the way for their sale and distribution of proceeds among thousands of investors allegedly cheated by the real estate group.The restitution follows a common order passed by the Madurai bench of the Madras high court on Oct 30. Adopting a victim-centric approach, the court directed that properties attached by the ED be sold and the proceeds distributed among victims under its supervision.The ED’s Chennai zonal office-II said the properties, attached through two provisional attachment orders, include immovable assets, bank accounts and shares. The agency initiated its investigation based on an FIR registered by the Economic Offences Wing (EOW), Madurai, against Neomax Properties Pvt Ltd and its group companies under various provisions of the IPC, the Banning of Unregulated Deposit Schemes (BUDS) Act and the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act.According to the ED investigation, the Neomax group collected huge sums, largely in cash, from thousands of investors by promising returns of 12% to 30% on investments in real estate plot development projects. However, the group allegedly failed to provide the promised returns or plots and diverted the funds to shell entities, group companies and other businesses.The group is estimated to owe around Rs 8,000 crore, including promised returns, to depositors and investors. The ED alleged that when investments matured, the group avoided repayment and persuaded or pressured depositors to reinvest their maturity amounts.A prosecution complaint has been filed before the Special Court under the Prevention of Money Laundering Act (PMLA) in Madurai, and the trial is underway. The high court’s order is expected to facilitate the recovery of money for investors through the sale of the attached assets, with the process monitored by the court.
