Nathella Sampath Jewellery's Rs380 Crore Bank Fraud: ED Hands Over 27 Properties Worth Rs164 Crore to SBI
Moneylife Digital Team 16 September 2025
The Chennai zonal office of the directorate of enforcement (ED) has restituted 27 immovable properties worth Rs163.85 crore to the State Bank of India (SBI) in connection with the Rs380 crore bank fraud case involving Nathella Sampath Jewellery Pvt Ltd (NSJPL) and others.
 
The restitution was carried out on 12 September 2025 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, as per the orders of the Special Court at Chennai, exercising powers under Section 8(8) of the Act.
 
The case originated from a first information report (FIR) registered by the Bengaluru office of central bureau of investigation (CBI), on 24 March 2018, following a complaint filed by SBI on behalf of a consortium of three banks. The consortium had extended loans worth Rs380 crore to NSJPL, which allegedly diverted the funds for purposes other than those intended and defaulted on repayments, causing significant losses to the banks.
 
According to ED’s investigation, the promoters of NSJPL used multiple entities to route and layer the loan proceeds for personal benefits and non-business activities. Acting on these findings, ED had attached 37 immovable properties valued at Rs328.44 crore on 31 July 2018 under Section 5 of PMLA. A prosecution complaint was subsequently filed before the Special Court on 15 July 2019, with charges framed on 28 October 2024. The trial is currently underway.
 
During the course of the trial, SBI filed an application seeking restitution of 27 of the attached properties, claiming its first right over the assets as a financial creditor under the SARFAESI Act. Under the second proviso to Section 8(8) of PMLA, the Special Court is empowered to restore properties to claimants or victims during trial.
 
Supporting SBI’s plea, ED confirmed that the bank was the victim in this fraud and that the attached properties were secured for the benefit of the consortium. Accepting the submission, the Special Court ordered the release of 27 properties in Chennai, worth Rs163.85 crore, to SBI.
 
The restitution marks a significant step in addressing the losses faced by the lending banks in the NSJPL fraud case, even as the criminal trial against the accused continues.
Comments
Free Helpline
Legal Credit
Feedback