ED restores assets worth Rs 55.86 crore to successful bidder in Era Infra Engineering case

With the aim of returning misappropriated assets to rightful claimants, the Directorate of Enforcement (ED) has restored properties valued at ₹55.86 crore to the successful resolution applicant in the case of Era Infra Engineering Limited.

The ED’s action follows an investigation initiated on the basis of an FIR registered by the CBI (FIR No. RCBD1/2018/E/0007 dated April 12, 2018) against Era Infra Engineering Limited, its promoter Hem Singh Bharana and others. The case, under sections 120-B, 420, 467, 468, and 471 of the IPC and Section 13(2) read with 13(1) of the Prevention of Corruption Act, pertains to a bank fraud of ₹250.70 crore.

Era Infra Engineering, which undertakes diversified infrastructure projects including airports, power plants, and residential complexes, had availed loans worth ₹650 crore from UCO Bank. Investigations revealed that a portion of these funds was fraudulently siphoned off by diverting them to group companies and for purposes not covered under the loan agreement. The account was classified as a non-performing asset on July 7, 2013.

Following the probe, the ED attached properties including two tunnel boring machines and bank balances under three provisional attachment orders issued on October 7, 2019, July 8, 2020, and August 5, 2020. A prosecution complaint seeking confiscation of these assets was filed on March 12, 2021.

Meanwhile, under the corporate insolvency process, SA Infrastructure Consultants Private Limited was declared the successful resolution applicant for Era Infra by the National Company Law Tribunal (NCLT) on June 11, 2024. Subsequently, the new management filed an application before the Special Court in New Delhi, seeking restoration of the attached properties in line with the approved resolution plan.

Agreeing to the plea, the ED moved to restore the assets, and the Special Court ordered the return of properties worth ₹55,85,96,157 to the new management of Era Infra.

This restoration underscores the ED’s continued efforts to ensure that proceeds of crime are recovered and returned to rightful claimants. The agency reiterated its commitment to combating money laundering and safeguarding the integrity of the financial system.

Also Read: Era Infra gets lifeline as NCLT approves SA Infrastructure’s resolution plan