NEW DELHI: In a significant relief for over 200 homebuyers involved in the Udaipur-based Royal Rajvilas (RRV) project, the Supreme Court has lifted the attachment on their flats by the Enforcement Directorate (ED).
The Court also dismissed the ED’s challenge to the insolvency resolution process, which had seen a new owner approved by the Mumbai bench of the National Company Law Tribunal (NCLT) to complete the project. Udaipur Entertainment World Pvt Ltd (UEWPL), the original owner, is now under new management.
The apex court commended the ED for its role in helping over 200 homebuyers reclaim their dream homes, which had been stalled for 12 years. However, it noted that the provisional attachment of 11 flats, believed to be linked to criminal proceeds, will remain in effect.
This case involves the RRV project, where the ED is investigating an embezzlement case exceeding Rs 1,200 crore against Bharat Bomb at Syndicate Bank (now Canara Bank), utilizing methods like discounting forged cheques and loans against counterfeit insurance policies.
The ED had issued multiple attachment orders, which included the Proceeds of Crime (POC) worth Rs 83.51 crore in the form of unsold inventory from UEWPL. Subsequently, UEWPL entered insolvency proceedings, and a resolution plan was approved by the NCLT on February 24, 2022.
Following the ED’s intervention, the Rajasthan High Court had stayed the NCLT’s approval of bids, asserting that the insolvency tribunal could not annul an order passed by the Adjudicating Authority under the PMLA, 2002.
The new management of UEWPL contested this high court order in the Supreme Court. The apex court instructed the ED to protect the interests of bona fide homebuyers who had invested in the project and were awaiting possession of their units due to ongoing legal issues.
After reviewing relevant claims, the ED submitted a ‘No Objection’ to the Supreme Court for the restoration of the attached properties for the benefit of genuine homebuyers, excluding the 11 flats tied to eight buyers.
On October 7, 2025, the ED filed an affidavit before the Supreme Court, resulting in the lifting of the provisional attachment order against Project Royal Rajvilas (RRV). The Supreme Court stated, “The Provisional Attachment Order against the Corporate Debtor is partially set aside, restoring the attached properties to the Successful Resolution Applicant (SRA) for the benefit of genuine and innocent homebuyers.”
The Court further ordered that “the name of the Corporate Debtor (Udaipur Entertainment World) be removed from the accused list” in the supplementary prosecution complaint filed by the ED on February 27, 2025.
However, a two-member bench, consisting of Justice Sanjay Kumar and Alok Radhe, clarified that this order does not address the merits of the case or the parties’ arguments.
The Supreme Court stated that the provisional attachment will persist for the 11 units in the RRV project, noting a total payment of Rs 7.82 crore related to alleged criminal proceeds. It added that if ongoing investigation by the Directorate of Enforcement (DoE) reveals connections between any payments made for the remaining flats and criminal proceeds, the agency can take appropriate action against those homebuyers.
The Supreme Court acknowledged the ED’s efforts in securing the interests of genuine homebuyers, stating, “We commend the efforts made by the learned counsel for the parties and the DoE in restoring attached properties to protect the rights of innocent homebuyers.”
