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ED Releases ₹3.8 Crore to Karnataka State Wakf Board on Sessions Court Directive to Restore Proceeds of Crime to Money Laundering Victims

ED figured that the manipulations in the money trail constituted siphoning off of the proceeds from the cheques, establishing a pattern of money laundering and fraudulent activity.

ED Releases ₹3.8 Crore to Karnataka State Wakf Board on Sessions Court Directive to Restore Proceeds of Crime to Money Laundering Victims
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The Directorate of Enforcement (ED) has facilitated the release of ₹3,82,74,444 to the Karnataka State Wakf Board upon the directive of the Additional Sessions Judge, Bengaluru City ( Special Court under Prevention of Money Laundering Act, 2002 (PMLA) ). The background of the proceedings arises from action initiated under the provisions of the PMLA, wherein the ED had attached...


The Directorate of Enforcement (ED) has facilitated the release of ₹3,82,74,444 to the Karnataka State Wakf Board upon the directive of the Additional Sessions Judge, Bengaluru City ( Special Court under Prevention of Money Laundering Act, 2002 (PMLA) ).

The background of the proceedings arises from action initiated under the provisions of the PMLA, wherein the ED had attached properties and proceeds deemed to be involved in crimes of money laundering.

The case follows the registration of FIRs against two Vijaya Bank officials along with Syed Siraj Ahmed, who was serving as a First Division Assistant with the Waqf Board.

Also Read: ED Admits Lack of Power to Seal Premises Without ‘Reasonto Believe’: Madras HC Orders De-Sealing and Grants Interim Relief

According to the details of the investigation, the Karnataka State Wakf Board had issued two cheques totalling ₹4,00,45,465 intended for the creation of Fixed Deposit accounts at Vijaya Bank. Instead of being deposited as fixed deposits, these funds were illicitly siphoned off and routed to certain fictitious entities.

Practical Case Studies in Forensic Accounting & Corporate Fraud Investigation Click Here

A sum of ₹4 crore was transferred to M/s. Verkeys Realities Pvt. Ltd., out of which ₹1.10 crore was utilized for the purchase of a Mercedes car from Ghatge Motors Pvt. Ltd. The investigation further revealed that ₹2,72,74,444 was subsequently transferred back to the account of M/s. Ajay Sharma Trading Corporation.

ED figured that the manipulations in the money trail constituted siphoning off of the proceeds from the cheques, establishing a pattern of money laundering and fraudulent activity.

Also Read: Who will Keep the ED under Enforcement? New Summonsagainst Senior Advocate Issued, Now Revoked

On uncovering the entire money trail and the diversion of proceeds of crime, the ED issued a Provisional Attachment Order for the amount of ₹3,82,74,444. Subsequently, on March 31, 2017, the ED filed a Prosecution Complaint before the Special PMLA Court in Bengaluru, naming six individuals and entities, including M/s. Verkeys Realities Pvt. Ltd. as accused in the case.

Practical Case Studies in Forensic Accounting & Corporate Fraud Investigation Click Here

An application for the release of the attached funds to the Karnataka State Wakf Board was instituted before the Special Court. The ED, adhering to their core objective as per the Prevention of Money Laundering Act (PMLA) raised no objections and supported the restitution of the attached proceeds to the Wakf Board, here being the legitimate victim in the case.

On July 1, 2025, the ED facilitated the handing over of the banker’s cheque for ₹3,82,74,444 to Jeelani H. Mokashi, CEO (Additional Charge) of the Karnataka State Wakf Board, ensuring the restoration of misappropriated funds.

Also Read: Bail as per S. 45(1) PMLA Not Necessary in Absence ofArrest under PMLA: Calcutta HC allows release under BNSS

In its official press release, the ED reiterated its commitment to ensuring justice for the victims of financial crimes, underscoring its determination to combat money laundering and return the proceeds of crime to their rightful owners

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