ED Restores ₹520.80 Crore to Claimant in Cox & Kings Money-Laundering Case

The Enforcement Directorate (ED) on 28 November 2025 announced that it has restored assets worth ₹520.80 crore to a legitimate claimant firm in the high-profile money-laundering case linked to Cox & Kings Ltd. (CKL), its promoters and associated entities. The decision follows a recent order by the Supreme Court of India, marking a major restitution in one of India’s largest financial-crime probes. 

Background: What Is the Cox & Kings Money-Laundering Case?

ED’s investigation into CKL flagged a total of roughly ₹4,100 crore as “proceeds of crime (PoC)” allegedly generated through bank-loan fraud and diversion of funds. The probe found that about ₹1,066 crore was siphoned off to a shell company, V Hotels Ltd.

Of this amount, ₹520.80 crore remained outstanding, and ED had attached these assets under the anti-money laundering law, the Prevention of Money Laundering Act, 2002 (PMLA). Subsequently, V Hotels went into insolvency under the Insolvency and Bankruptcy Code, 2016 (IBC).

How Restitution Unfolded: From Insolvency to Supreme Court Order

In the insolvency resolution of V Hotels, Macrotech Developers Ltd. was approved as the successful resolution applicant (SRA). As part of the resolution process, Macrotech deposited ₹520.80 crore — representing the substituted value of the attached assets — into an interest-bearing fixed deposit with the State Bank of India (SBI). 

Following a Special Leave Petition filed by ED, the Supreme Court, invoking Section 8(8) of PMLA and Section 32A of IBC, approved restitution of the deposit (with accrued interest) to Macrotech — effectively restoring the ₹520.80 crore to a legitimate claimant. The Court also commended ED’s efforts to uphold justice. 

Why This Matter Is Significant

• Major Restitution in High-Value Case: Returning more than half a thousand crore in a case where total alleged crime proceeds exceed ₹4,000 crore is rare — this sets a precedent for asset restitution under PMLA-IBC framework.
• Balanced Enforcement & Justice: The decision reinforces that anti-money laundering enforcement does not automatically mean permanent seizure — where rightful claimants are involved, law allows restitution.
• Clarity for Corporate Insolvency Resolutions: When a shell-company receiving illicit funds enters insolvency and a clean resolution applicant acquires it, the substituted-value mechanism can help restore assets — giving clarity to stakeholders in banking/loan-fraud cases.
• Message to Fraudsters & Lenders: Diversion of loan-proceeds via shell firms remains high risk. Regulators show they can trace, attach, and — if required — restitute, ensuring no safe haven for ill-gotten gains.

What Next: ED’s Continued Crackdown & Market Implications

ED has reiterated its commitment to pursue confiscation of proceeds of crime, prosecute perpetrators, and also ensure that legitimate stakeholders are compensated where law mandates. The agency clarified that while restitution was ordered in this case, the criminal and money-laundering investigation remains active against all accused entities and promoters linked to CKL.

For lenders, corporate creditors and investors — the outcome sends a strong message about transparency, accountability and risk mitigation. Entities linked to high-value loans or exposures to companies under investigation must now factor in enhanced due diligence, especially in cases of shell-firms, complex fund-flows or cross-linked companies under IBC.

From a broader policy perspective, this case may influence how regulatory agencies, insolvency professionals and courts treat proceeds-of-crime, repayments, and restitution in large-scale frauds — potentially shaping future enforcement and insolvency-resolution frameworks in India’s financial-fraud ecosystem.

For ongoing coverage of financial-crime investigations, asset-restitution rulings and regulatory enforcement developments, stay tuned to Accounting firms in India — we break down complex economic stories with clarity and insight.