ED Secures Confiscation Order in ₹6.57 Crore Money Laundering Case

New Delhi: The Directorate of Enforcement (ED), Headquarters Office, has secured a significant confiscation order under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in an ongoing investigation involving M/s Zatak Softech Pvt. Ltd. and others. The case stems from allegations of illegal trafficking of psychotropic substances and the subsequent laundering of proceeds generated from the illicit trade.

According to the ED, the investigation was initiated on the basis of a scheduled offence registered under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985. During the course of the probe, investigators uncovered a large-scale network through which the principal accused, Amit Kumar and Archana Sharma, allegedly generated substantial illegal profits over an extended period through the unlawful trafficking of psychotropic substances.

The agency revealed that the proceeds derived from the criminal activity were systematically layered, concealed, and projected as legitimate assets through investments in multiple movable and immovable properties. These assets were reportedly acquired in the names of the accused individuals as well as various associated entities and persons in an effort to disguise the origin of the funds.

Further investigation found that M/s Farma Glow, a partnership firm linked to the accused, played a key role in managing and holding a portion of the proceeds of crime. The firm allegedly maintained bank accounts that were used to store funds generated from the illegal operations. These accounts were subsequently identified and provisionally attached by the Enforcement Directorate as part of its money laundering investigation.

The ED’s investigation led to the provisional attachment of movable and immovable assets worth approximately ₹6.57 crore. Among the attached properties were two bank accounts held in the name of M/s Farma Glow, containing funds valued at nearly ₹60 lakh.

In a significant development, the Special Court under the PMLA in Gurugram, Haryana, has ordered the confiscation of these bank accounts to the Government of India under Section 8(7) of the Prevention of Money Laundering Act, 2002. The court concluded that the funds represented proceeds of crime generated from the scheduled offence and were therefore liable for confiscation under the law.

The ED stated that M/s Farma Glow is a partnership concern in which Amit Kumar and Archana Sharma are partners. Both accused are currently absconding and have been declared Proclaimed Offenders by the competent court through an order dated May 19, 2025.

Officials noted that the confiscation order marks an important milestone in the investigation, reinforcing the government’s efforts to dismantle financial networks linked to narcotics trafficking and other organized crimes. By targeting illegally acquired assets, enforcement agencies aim to prevent offenders from benefiting from criminal proceeds and to strengthen the deterrent effect of anti-money laundering laws.

The Enforcement Directorate further stated that efforts are continuing to trace additional assets connected to the alleged laundering activities. Proceedings related to securing convictions of the remaining accused persons and obtaining further confiscation orders are currently underway.

The case highlights the ED’s continued focus on disrupting financial channels used to conceal proceeds of crime and ensuring that assets derived from illegal activities are ultimately brought under government control in accordance with the provisions of the PMLA. As the investigation progresses, additional legal action and confiscation proceedings are expected against individuals and entities found to be involved in the laundering of funds generated through the illegal psychotropic substance trade.