ED office in 120 crore farmhouse: Enforcement Directorates (ED) Gurugram Zonal Office operates from a controversial farmhouse in Rajokri, South Delhi, valued at approximately ₹120 crore. This property, seized in a money laundering case, has drawn scrutiny and is now the subject of a court challenge.What you need to know about the caseLocated in Farm No. 22, Rajokri, the farmhouse is one of three properties currently used as ED offices after being confiscated. The other two locations are in Ranchi and Mumbai. The ED seized the farmhouse from Atul Bansal, a real estate agent implicated in a money laundering case. Bansal, who purchased the property in 2004, passed away before the legal proceedings began.In 2012, Bansal mortgaged the farmhouse, among other assets, to Union Bank of India for a loan totaling ₹111 crore. Due to non-payment, the bank took possession of the property in 2017, leading Bansals company, Wisdom Realtors, to challenge the banks action in the Debt Recovery Tribunal (DRT).Expected sale was stalled As reported by Ritu Sarin of the Indian Express, Wisdom Realtors secured a stay order from the DRT, prompting the bank to appeal to the Debt Recovery Appellate Tribunal (DRAT). Legal representatives for Union Bank claimed they discovered in 2019 that the ED had already attached the property, which was collateral for their loan.According to a 2019 DRAT order, Wisdom Realtors had proposed a settlement to the bank for ₹96 crore, with a prospective buyer ready to purchase the property. However, the sale did not materialize.Bank objects to EDs actionsAlok Kumar, the banks attorney, stated, “The purpose of attachment is to recover outstanding amounts for the government treasury. Despite the seizure, the ED neither returned the property to the bank nor auctioned it to recoup public funds. This undermines the purpose of the seizure.” He further argued that the property has become a non-performing asset (NPA) under these circumstances, and the EDs use of the farmhouse as an office contradicts the intent of the Prevention of Money Laundering Act (PMLA).Top officials within the ED clarified that the farmhouse is one of three properties currently utilized as their offices, and no challenges have arisen regarding the other two locations.EDs powers and justificationED officials noted that under Section 9 of the PMLA, seized properties are under the jurisdiction of the central government. A gazette notification from the Finance Ministry on September 12, 2023, granted Special Directors of the ED administrative powers over these properties, allowing them to manage and dispose of assets as necessary.While the notification does not explicitly permit the ED to operate from these seized properties, officials stated that they can manage them according to their operational needs. One senior official suggested that the farmhouse could serve as a training center for the ED in the future, emphasizing the importance of maintaining the property to prevent deterioration.
