 "ED office or mortgaged asset? Legal battle over Rs 120 cr Rajokri property")
Once a luxurious farmhouse in the heart of South Delhi’s Rajokri, Farm No 22 in The Greens is now a repurposed property. With a fading ‘ED’ painted on its facade, this 2.5-acre property now serves as the Gurugram Zonal office of the Enforcement Directorate. The transformation from a plush private residence to a government office raises questions about its confiscation and usage, triggering a legal tussle with Union Bank of India, according to a report by The Indian Express.
The once grand estate, purchased in 2004 by realtor Atul Bansal, now bears the scars of its changed fate. The indoor swimming pool, once a symbol of opulence, has been reduced to a dumping ground for discarded government furniture. Stray dogs roam the grounds. The central lawn, estimated to be worth Rs 120 crore, lined with silver palms and fir trees, is now a parking lot for seized cars — some valued at over Rs 1 crore.
Almost 100 staff members, including casual employees, are based at this office. The news report quoted officials as saying that when space is limited at the ED’s New Delhi headquarters for keeping confiscated luxury vehicles, they are parked at this expansive ‘ED office’ in Rajokri. Besides the parking yard, one of the large living rooms has also been converted into a training centre for the ED – a far cry from its former grandeur.
This farmhouse, however, has not just been a silent witness to the ED’s operations — it is at the centre of a legal battle. The property, mortgaged to a consortium of banks for Rs 111 crore in 2012, was seized by Union Bank of India in 2017 after Bansal’s company, Wisdom Realtors, defaulted on payments.
Despite a stay order obtained by Wisdom Realtors in the Debt Recovery Tribunal (DRT), the ED attached and later confiscated the property under the Prevention of Money Laundering Act (PMLA), a move that the bank is now contesting in court.
The legal dispute has been ongoing since 2019, with Union Bank contesting the ED’s confiscation. The bank argues that the ED’s actions undermine the purpose of the PMLA, which seeks to recover dues for the government. By neither transferring the property to the bank nor auctioning it to generate public funds, the property has effectively become a non-performing asset (NPA), according to the bank’s lawyer, Alok Kumar.
The farmhouse is one of three properties seized by the ED and repurposed as offices, with similar cases in Ranchi and Mumbai. Under Section 9 of the PMLA, confiscated properties remain under the control of the central government. A Gazette notification from the Ministry of Finance, issued in September 2023, grants Special Directors of the ED authority to manage these properties until their disposal.
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While the notification does not explicitly permit the ED to use such properties as offices, the agency is taking advantage of the legal ambiguity. “We are, simply, using this farmhouse, for example, till the time of disposal of the property comes,” said a senior ED official. The property’s luxurious rooms, once private sanctuaries, have been converted into office spaces, with staff occupying the bedrooms, living rooms, and even walk-in closets.
However, maintaining the sprawling estate has proven to be a significant challenge. “Ideally, the ED should have its Gurugram zonal office in Gurugram itself,” said one official. There is speculation that the farmhouse could eventually be converted into a dedicated ED training centre, but for now, it serves as both an office and a symbol of the complicated legal battle surrounding it.
As the case continues to unfold, the future of Farm No 22 remains uncertain. Will it be auctioned off to settle the dues, or will it remain under the ED’s control? For now, it stands as a reminder of the complexities of India’s financial and legal systems, a property once meant for luxury, is now entangled in a fight over justice and recovery.