In a major legal development concerning the long-standing issue of asset seizure and account freezing under the Prevention of Money Laundering Act, 2002 (PMLA), the Kerala High Court has passed a significant order in favour of the Company with Scrip Code: 514394, directing the Directorate of Enforcement (DOE) to act on the company's restoration plea within a strict timeline of 30 days.

The matter relates to the company’s business assets and bank accounts that had been seized and frozen during an earlier probe under the PMLA. The company had been pursuing legal remedies for over two years to get its assets restored, citing relief granted by various judicial authorities, including Special PMLA Court and the Appellate Tribunal for PMLA, New Delhi.

Background: Assets Seized Under PMLA

The matter first came into the public domain in early 2022, when the company made a disclosure on 24 January 2022, confirming that certain business assets and bank accounts were provisionally attached under the provisions of PMLA. Subsequent filings on 26.01.2022, 20.07.2022, 27.02.2023, 23.09.2024 and 23.05.2025 continued to update shareholders on the legal progress.

According to the latest disclosure made to BSE dated 21 July 2025, the company stated that after prolonged legal proceedings, multiple courts had ruled in its favour. Specifically:

• The Hon’ble High Court of Kerala, Special Judge [SPE/CBI)-III, which handles PMLA matters,

• And the Appellate Tribunal for PMLA in New Delhi, both quashed the Department of Enforcement (DOE)’s provisional attachment orders.

Following these decisions, the company filed a restoration application before the DOE, Kerala, on 23 May 2025, requesting the release of seized assets and unfreezing of its bank accounts. However, the DOE failed to take action, compelling the company to seek constitutional relief.

High Court Writ Petition: A Turning Point

Left with no alternative, the company moved a writ petition under Article 226 of the Constitution of India before the Hon’ble Kerala High Court. The petition sought immediate intervention on the grounds that the DOE was in contempt of judicial pronouncements, and that the continued freezing of accounts was hampering its business operations.

In its order dated 14 July 2025 (received by the company on 19 July 2025), the Kerala High Court ruled in favour of the company. The key operative part of the judgement states:

“I dispose of the Writ Petition, by directing the respondent to consider and dispose of Ext. P13 representation, in accordance with law and expeditiously as possible, at any rate within 30 days from the date of production of a copy of the judgement.”

This direction essentially compels the DOE to act on the company’s application for restoration of business assets and bank accounts within a tight timeline. The court has thus provided much-needed relief to the company, reinforcing the importance of administrative compliance with judicial orders.

Legal Timeline

Here’s a concise summary of how the legal journey unfolded:

Implications for the Company

The ongoing asset and bank account freeze had created a severe operational roadblock for the company. It affected day-to-day operations, working capital management, and investor confidence. With the High Court’s intervention, the company is now likely to regain access to its resources, subject to the DOE’s compliance with the judgement.

Should the DOE act within the stipulated 30-day period, the company can look forward to:

• Full restoration of seized business assets

• Unfreezing of all previously frozen bank accounts

• Return to operational normalcy

• Improved investor sentiment and market stability

Regulatory Compliance

The company has made this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed entities to inform stock exchanges about material developments that impact operations or investor interests.

Further, the company referenced SEBI Master Circulars and ensured that its disclosure aligns with principles of transparency and prompt information dissemination, in accordance with good corporate governance practices.

What Lies Ahead

Investors and stakeholders will now closely monitor the DOE’s response to the High Court's directive. A delay or non-compliance could trigger contempt proceedings and may prompt further litigation. Conversely, a timely decision by the DOE could finally bring closure to a case that has lingered since early 2022.

While no fresh financials or market guidance were released in the update, the regulatory clarity and court support may act as a positive trigger for the company’s share price and operational resumption.

Conclusion

The Kerala High Court’s directive for the DOE to act within 30 days is a significant development in the long legal battle faced by the company under the PMLA framework. After over two years of legal uncertainty, the company now has a clear legal mandate and timeline for asset restoration.

This development is likely to bring operational relief, stakeholder confidence, and strategic momentum back to the company, provided the authorities execute the order in letter and spirit.

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