https://www.cnbctv18.com/india/ed-greenlights-nirma-arms-acquisition-of-rs-952-crore-vadraj-cement-plant-in-ilfs-linked-case-19628665.htm

In a significant breakthrough in the IL&FS-linked financial scandal, the Enforcement Directorate (ED) has returned assets worth ₹952 crore to Nuvoco Vistas Corporation Ltd., a Nirma Group company, clearing the way for its takeover of Vadraj Cement’s Surat plant.

The decision, formalised by the Special PMLA Court in Mumbai on June 25, follows the ED’s submission of a no-objection certificate, effectively enabling the transfer of properties previously frozen during a money laundering probe.

The attached assets, including the Surat cement plant of Vadraj Cement Ltd. (formerly ABG Cement), were seized in January 2020 for their alleged role in a ₹952 crore fraud involving IL&FS Financial Services Ltd. (IFIN). Vadraj Cement, a group entity of ABG, had received loans from IFIN that later turned non-performing, prompting the ED to step in under the Prevention of Money Laundering Act (PMLA), 2002.

With Punjab National Bank being the largest creditor with dues of ₹2,122 crore, other key lenders included Union Bank of India, Indian Overseas Bank, Central Bank of India, and JC Flowers ARC, all of whom had substantial exposure to Vadraj Cement.

The turning point came in April 2025, when the National Company Law Tribunal (NCLT), Mumbai, approved a ₹1,706 crore resolution plan under the Insolvency and Bankruptcy Code (IBC), enabling Nuvoco Vistas to acquire the distressed company. To complete the deal, Nuvoco sought the return of the attached property, submitting its request to the PMLA court.

Recognising that the property had legitimate ownership under the approved resolution plan, and that the purpose of PMLA is to return proceeds of crime to rightful claimants, the ED raised no objection. The court, acting under Sections 8(7) and 8(8) of PMLA and Rule 3A of the PML (Restoration of Property) Rules, 2016, authorised the handover.

The court has also mandated that ED prepare a full inventory of the assets before transfer, and that Nuvoco Vistas provide an undertaking to return or compensate the value of the property if required in future judicial proceedings.

This development is seen as a pivotal moment in resolving the IL&FS crisis and could bolster recovery prospects for several Indian banks caught in the aftermath of one of India’s largest financial sector defaults.