SAFEMA Tribunal Permits Sale of Attached Properties by CIG Realty Fund Subject to Rs. 284.92 Crore Escrow Security
1. Background and Procedural History
The Appellate Tribunal under SAFEMA at New Delhi disposed of an appeal filed by CIG Realty Fund challenging an attachment confirmation order passed under the Prevention of Money Laundering Act, 2002. The order under challenge before the Tribunal was the Adjudicating Authority's order dated December 2, 2022, which had confirmed a Provisional Attachment Order ("PAO") dated June 16, 2022. The appeal was registered as FPA-PMLA-5526/DLI/2023, and the final order was delivered on October 12, 2026, by Chairman Justice Munishwar Nath Bhandari.
The predicate offence underlying the money laundering proceedings was FIR No. 473/2017, registered at Police Station, Saket, Delhi. The allegations in that FIR named Shri Ramesh Chandra, Shri Sanjay Chandra, and Shri Deepak Bajaj, Managing Director of CIG Realty Fund, along with Unitech Realty Investors Private Limited (since renamed Auram Asset Management Private Limited) and unknown co-accused, for criminal conspiracy, cheating investors, misappropriation of funds, forgery, and criminal breach of trust.
2. Genesis of the Enforcement Directorate Investigation
Following registration of the FIR disclosing the predicate offence, the Enforcement Directorate recorded an Enforcement Case Information Report and conducted investigation under the Prevention of Money Laundering Act, 2002. The investigation revealed that Rs. 244.92 crore from the homebuyer and loan funds of Unitech Limited was criminally diverted to CIG Realty Fund on the directions of Shri Sanjay Chandra and others. This diversion was executed through a complex web of interconnected transactions.
The diverted funds were channelled through M/s Auram Asset Management Private Limited ("M/s AAMPL") to acquire various land-holding companies. M/s AAMPL counted Shri Ramesh Chandra, Shri Sanjay Chandra, and Shri Ajay Chandra among its directors and beneficial owners, and these individuals were also designated as Advisor and Manager of CIG Realty Fund. Upon investment in CIG Realty Fund, units were allotted to M/s Unitech Limited in proportion to its total investment.
CIG Realty Fund had launched five schemes, of which Schemes I, II, and IV remained active at the time of proceedings. These schemes had been running beyond their prescribed time limits, prompting SEBI to take an adverse view of the activities of M/s AAMPL vide its order dated March 28, 2019, and impose a penalty on them. SEBI further communicated vide letter dated June 17, 2022, that 139 investors had lodged complaints against CIG Realty Fund.
The ED, during investigation, formed reasons to believe that proceeds of crime to the extent of Rs. 189.92 crore remained with CIG Realty Fund out of the total Rs. 244.92 crore received by it. The balance of approximately Rs. 55 crore had been accounted for through sale of properties allotted by CIG Realty Fund to its subsidiary companies. The funds were used to acquire immovable properties, which were then provisionally attached and subsequently confirmed by the Adjudicating Authority.
3. Nature and Extent of Attached Properties
The PAO No. 16 of 2022 covered a substantial portfolio of assets. As per the appellant's submissions, the attached assets included approximately 777 units comprising flats, villas, plots, shops, office spaces (including those under construction), and other land assets held by CIG Realty Fund. Additionally, a bank balance of Rs. 1,23,69,335 standing in the account of CIG Realty Fund was also attached. The scheme-wise particulars of the attached land parcels and bank accounts were set out in Table-A and Table-B of the impugned order.