Kochi Feb 19 In a major step towards compensating victims of the Rs 2,000-crore Popular Finance scam, the Special Court for PMLA Cases at Ernakulam has ordered restitution of attached assets worth Rs 65.07 crore to the Competent Authority under the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act).
The order dated February 10, 2026, directs that movable properties valued at Rs 33.20 crore and immovable assets worth Rs 31.87 crore, earlier attached by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002, be handed over for adjudication and distribution among depositors.
The ED had issued provisional attachment orders in September and December 2021 during its probe into alleged money laundering linked to the fraud.
The Special Court observed that the interests of affected depositors, common under both statutes, must be prioritised and that transferring the assets would enable equitable distribution.
Objections raised by the accused have been kept open for adjudication before the BUDS Authority.
The development comes even as the Kerala High Court recently pulled up the Competent Authority under the BUDS Act for delays in complying with earlier court directions in the Popular Finance matter.
The High Court expressed concern about the slow progress in asset management and restitution, despite thousands of investors awaiting relief.
Popular Finance, a non-banking finance company headquartered in Ranni, Pathanamthitta district, has been in operation since 1965, with branches across Kerala, Karnataka, Haryana, Maharashtra, and Tamil Nadu.
Investigations revealed that nearly 30,000 investors were allegedly defrauded of close to Rs 2,000 crore through schemes promising returns of up to 12 per cent per annum.
Given the scale and inter-State ramifications, the probe was transferred to the Central Bureau of Investigation (CBI).
Those arrested in August 2021 include managing director Thomas Daniel and Rinu Mariam Thomas.
Other family members were also arrested, with two daughters apprehended at Delhi airport while allegedly attempting to leave for Australia.
As legal proceedings continue into early 2026, the restitution order marks a crucial step in the long-delayed effort to secure financial recovery for thousands of duped depositors.
--IANS
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