ED restores assets worth ₹238.90 crore in Neomax case

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Asset restoration in Neomax

Highlights

The ED has restored assets worth ₹238.90 crore in a money laundering case linked to Neomax Properties Private Ltd.
On 30.10.2026, the Madras High Court ordered that these assets be sold and the proceeds distributed to victim investors under court supervision.
The Neomax Group owes investors and depositors approximately ₹8,000 crore in total, and the investigation and legal proceedings are ongoing.

This article was translated from the original. Read the original version by our correspondent here.

Recovery process following the court order

According to the Enforcement Directorate, its Chennai Zonal Office II has restored assets worth ₹238.90 crore in a money laundering case against M/s. Neomax Properties Private Ltd. and others. A common order dated 30.10.2026 by the Madurai Bench of the Madras High Court states that the assets attached by the ED will be sold and the proceeds distributed to victim investors under court supervision.

The court has taken a victim-centric approach, linking the disposal of assets to repayments to investors. The move comes as authorities seek to convert seized assets in the case into cash and channel the funds to affected depositors.

Fundraising from investors and investigation status

The ED's investigation began on the basis of an FIR registered by the Economic Offences Wing in Madurai. The case was registered under various sections of the IPC, BUDS Act and TNPID Act. It alleges that Neomax Properties Pvt. Ltd. and its group companies collected lakhs of rupees from numerous investors by promising high returns on real estate plot development projects.

The ED says its investigation found that the Neomax Group raised large sums—primarily in cash—from thousands of investors and diverted the funds to shell entities, group companies and other entities outside the group. According to the agency, the group owes depositors and investors approximately ₹8,000 crore, including promised returns. Instead of repaying matured amounts, investors were encouraged or compelled to reinvest.

During the investigation, the ED issued two provisional attachment orders covering assets worth approximately ₹238.90 crore, including immovable properties, bank accounts and shares. The agency said that a prosecution complaint has also been filed before the Special Court under the PMLA in Madurai, and that hearings in the case are ongoing.

In its investigation into the alleged collective investment fraud linked to PACL, the Enforcement Directorate had provisionally attached 48 immovable properties with a market value of ₹567.45 crore in Pune, Mumbai and Raigad, Maharashtra. Our previous report noted that, according to the agency, these properties were purchased with funds allegedly diverted from money raised from investors. Amid allegations that more than ₹48,000 crore was raised in the case, the total value of attached assets had reached ₹30,235.21 crore.

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