Bengaluru, July 8: In a major move aimed at ensuring justice in financial fraud cases, the Enforcement Directorate (ED) has restored assets worth ₹3.82 crore to the Karnataka Waqf Board in connection with a money laundering investigation. The Bengaluru Zonal Office of the ED facilitated the handover through a banker’s cheque on July 1, 2025.
The investigation was initiated following an FIR against two Vijaya Bank officials and Syed Siraj Ahmed, a First Division Assistant with the Waqf Board. According to the ED, the Waqf Board had issued two cheques totaling ₹4 crore to open Fixed Deposit (FD) accounts at Vijaya Bank. However, the funds were misappropriated and diverted to fictitious entities.
A portion of the embezzled money—₹4 crore—was transferred to M/s Verkeys Realities Pvt Ltd. Of this, ₹1.10 crore was used to purchase a Mercedes-Benz car from Ghatge Motors Pvt Ltd, and ₹2.72 crore was routed to M/s Ajay Sharma Trading Corporation.
The ED tracked the money trail and subsequently issued a Provisional Attachment Order (PAO) for assets worth ₹3.82 crore. A Prosecution Complaint was filed in 2017 before the Special PMLA Court in Bengaluru against six accused individuals and entities involved in the case.
In line with the Prevention of Money Laundering Act (PMLA) and its objective to return Proceeds of Crime (POC) to legitimate victims, the ED did not object to the release of the attached assets to the Karnataka Waqf Board. The Special Court approved the restitution, and ED officials handed over the amount to Jeelani H. Mokashi, CEO (Additional Charge) of the Waqf Board.
The ED called the development a significant step in its mission to restore misappropriated public funds and reaffirmed its commitment to fighting financial crime and protecting institutional integrity.
