Udaipur Entertainment World Private Limited Vs Union of India & Ors (Supreme Court of India)
The Supreme Court of India, in Udaipur Entertainment World Private Limited Vs Union of India & Ors, addressed matters concerning the attachment of properties under the Prevention of Money Laundering Act, 2002 (PMLA) and their linkage to proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). The Court noted that, pursuant to earlier orders dated 11 September 2025 and 18 September 2025, the parties had reached an amicable settlement aimed at safeguarding the interests of genuine and innocent homebuyers.
An affidavit dated 7 October 2025 filed by the Directorate of Enforcement (DoE) led to the partial setting aside of Provisional Attachment Order (PAO) No. 05/2019, originally issued on 2 April 2019 against the Corporate Debtor. The Supreme Court directed that the attached properties be restored to the Successful Resolution Applicant (SRA), who had stepped into the shoes of the Corporate Debtor solely for the benefit of bona fide homebuyers who had acquired the affected units. The Court clarified that this restitution order was being passed without entering into the merits or rival contentions of the parties and was made under the second proviso to Section 8(8) of the PMLA.
