Delhi HC orders ED to release seized M3M assets, keeps ₹404 crore attachment

The Delhi High Court has directed the Enforcement Directorate (ED) to release cash, jewellery, vehicles and fixed deposits seized from the M3M Group and its promoters. It has also ordered the return of title deeds to land parcels deposited under an earlier order. The judgment, delivered by Justice Mini Pushkarna in W.P.(Crl) 1751 of 2023, is dated 14 October 2026. The court did not disturb the ₹404 crore provisional attachment of group property that the ED ordered in July 2026.

What the court ordered

The writ petition was filed in 2023 under Article 226 of the Constitution, read with Section 482 of the CrPC. It challenged an ED summons dated 6 June 2023, seizure memos dated 1, 2 and 4 June 2023, and a letter of 3 June 2023 freezing bank accounts of one petitioner and its group companies. The court held the challenge to the summons infructuous, because the date for appearance had already passed.

The assets the court directed to be released forthwith to the petitioners or their authorised representatives are:

• 17 vehicles listed in the ED's records, including several luxury cars
• Cash of ₹16,88,300 in mixed denominations
• Jewellery, gold, silver and bullion totalling ₹5,77,15,325
• Two fixed deposits in the name of M3M India Private Limited, of ₹10 crore and ₹7 crore

The title deeds of land parcels deposited under the court's order of 12 June 2023 are also to be released. The court noted that the ED had already secured ₹404 crore through the July 2026 attachment, and that these parcels are not part of that attachment order. The court set no later date for the releases.

What the order does not decide

In a counter-affidavit dated 24 August 2026, the ED said the seized cash, jewellery, vehicles and fixed deposits are no longer part of the investigation in this case. It said this was without prejudice to its rights in the pending prosecution under the Prevention of Money Laundering Act (PMLA) before the Special Court.

The court said its order is not an expression on the merits of the 17 July 2026 attachment order, or on the pending proceedings against M3M Group companies. Provisional attachment is a temporary freeze by the ED on property it treats as proceeds of crime. Under the PMLA it lapses after 180 days from the order, unless the PMLA Adjudicating Authority passes an order under Section 8(3). The ED's attachment order describes the attached land as proceeds of crime generated from customer collections of IREO Group entities and diverted to M3M Group entities. These are the agency's allegations, and the court has not ruled on them. The attached land lies in Bhondsi and Raiseena villages in Sohna, Gurugram.

The ED had earlier attached 88.29 acres valued at ₹300.11 crore in Basharia village, Gurugram, belonging to M3M India Infrastructures Pvt Ltd. It announced that on 19 July 2024.

What it means for buyers and developers

For buyers, the order does not change the terms of any agreement or the status of any unit. The case concerns seized assets of the group and its promoters, not buyer funds, and no sale, lease or launch is linked to the ruling. Buyers who want clarity on a particular project should ask the developer in writing whether any land under it appears in the ED's attachment schedule, and ask for the title records.

For developers in the group, the Rs 404 crore attached land remains under restraint. The ED's 180-day period, counted from 17 July 2026, runs to about 13 January 2027, unless the Adjudicating Authority acts before then. The release of the listed assets and title deeds is to happen forthwith. Buyers and developers should watch for the Adjudicating Authority's decision and for any ruling from the Special Court in the PMLA prosecution, which the order leaves open.