The Enforcement Directorate (ED) has started giving back recovered assets to banks that were cheated in a real estate fraud case, instead of keeping the properties attached for an unlimited time. A special court under the Prevention of Money Laundering Act (PMLA) has ordered that some properties seized from real estate promoter Neeraj Thatai be returned to the banks so they can recover their money. Neeraj Thatai, also known as Neeraj Arora, is accused of cheating thousands of investors in Punjab and is facing 108 police cases for fraud.
What the court ordered?
The Enforcement Directorate (ED) has given six seized properties, including land and buildings, back to the State Bank of Patiala and Catholic Syrian Bank. These properties were earlier taken over by the ED during its investigation into the fraud case. While their official value is recorded as ₹20.21 crore, their current market value is estimated to be around ₹50 crore. This step was taken to help the banks recover the money they lost due to the fraud.
Under the Prevention of Money Laundering Act (PMLA), once a court gives permission, the Enforcement Directorate can return attached assets to rightful claimants such as banks that were cheated. This shows a change in approach, where the focus is not only on punishing those who committed financial crimes but also on helping victims recover their losses.
What the scam was about?
Neeraj Thatai lured people by promising affordable residential and commercial plots in well-known areas such as Chandigarh, Mohali, Zirakpur, and Anandpur Sahib. Many investors trusted these offers and invested their hard-earned money. However, they neither received the promised land nor got their money back. Investigations by the Enforcement Directorate revealed that the funds collected from investors were misused to purchase personal properties instead of being used for the housing projects. It was also found that several housing colonies promoted by Thatai were illegal and did not have the required government approvals.
After the fraud came to light, the company shut down its offices and Thatai, along with other promoters, disappeared. In 2016, Thatai jumped bail and remained on the run for the next nine years. A court declared him a proclaimed offender in 2017 as he continued to evade the law. In April 2024, the police finally arrested him in Uttarakhand, where he had been living under fake names to avoid being traced.
Police believe that the accused owns a huge amount of property, including about 1,200 acres of land and nearly 200 flats. The total value of these assets is estimated to be more than ₹1,000 crore. Investigators suspect that much of this wealth was created using money taken from victims.
Why this matters?
This action is important because it helps banks recover money lost to fraud, which had become non-performing assets (NPAs). It also sends a strong message that crime does not pay, as properties bought with illegal money can be taken back and returned to those who were cheated. Additionally, it increases public confidence in law enforcement agencies by showing that large financial and real estate fraud cases can be investigated properly and victims can get relief.
Thatai is currently in judicial custody. Most of the police cases registered against him are in Fazilka, where 47 FIRs have been filed. Other cases are spread across districts such as Ferozepur, Patiala, and Fatehgarh Sahib, showing the wide impact of the alleged fraud across Punjab.
Investigating agencies are now focusing not only on arresting the accused but also on recovering assets and compensating victims. In many real estate fraud cases, bank loans are diverted to buy properties instead of being used for projects, which makes seizing and returning these assets very important for helping banks and investors recover their losses.
