Bengaluru, July 8 In a significant move to restore the Proceeds of Crime (POC) to the rightful claimants, the Enforcement Directorate (ED), Bengaluru Zonal Office, has taken a significant step by releasing properties valued at Rs 3.82 crore to the Karnataka Waqf Board in a money laundering case.
The money from the Waqf Board released for fixed deposits was utilised to purchase a Mercedes-Benz car, and a further amount was transferred to a trading corporation.
According to an official statement of the ED issued on Tuesday, the agency initiated an investigation on the basis of an FIR filed against two Vijaya Bank officials and Syed Siraj Ahmed, a First Division Assistant with the Waqf Board.
In this case, the Waqf Board issued two cheques amounting to Rs 4,00,45,465 to open Fixed Deposit accounts at Vijaya Bank. However, instead of opening the fixed deposits, the money was siphoned off by transferring it to fictitious entities, the ED stated.
Further, Rs 4 crore was transferred to M/s. Verkeys Realities Pvt Ltd, which spent Rs 1.10 crore purchasing a Mercedes car from Ghatge Motors Pvt Ltd. Further, Rs 2,72,74,444 was transferred back to the account of M/s. Ajay Sharma Trading Corporation, the ED stated.
Upon uncovering these illicit financial transactions and the proper money trail of Proceeds of Crime (POC), the ED issued a Provisional Attachment Order (PAO) totalling Rs 3,82,74,444, the ED said.
On March 31, 2017, ED filed a Prosecution Complaint (PC) before the Special PMLA Court in Bengaluru, against six individuals and entities, including M/s. Verkeys Realities Pvt Ltd, the statement said.
In line with the PMLA and its core objective of ensuring the restitution of POC to the legitimate victims, the ED did not raise any objections when the Additional Sessions Judge considered the release of the funds to the Karnataka State Wakf Board—the rightful claimant in this case, the ED said.
On July 1, 2025, in a further demonstration of its commitment to justice, ED facilitated the release of the entire amount. A banker’s cheque of Rs 3,82,74,444 was handed over to Jeelani H. Mokashi, CEO (Additional Charge), of the Karnataka State Wakf Board, the ED said.
This marks a significant step forward in the ED's ongoing mission to restore the misappropriated funds to those who have been wronged, the ED said.
This release underscores the ED's commitment to ensuring justice for victims of financial crimes. ED remains resolute in its dedication to combating money laundering and ensuring that the Proceeds of Crime are returned to their rightful owners, the ED stated.
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