The Special PMLA Court at Ernakulam has ordered restitution of attached assets worth Rs 65.07 crore in the Popular Group case, directing transfer to the Competent Authority under the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019 for distribution to depositors.
The order, dated 10 February 2026, covers assets earlier attached by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), 2002. The restituted properties comprise:
- Rs 33.20 crore in movable assets
- Rs 31.87 crore in immovable assets
Origin of the ED Case
The ED registered ECIR No. KCZO/32/2020 on 17 September 2020 based on IPC offences and provisions of the BUDS Act, 2019.
Scheduled offences invoked include Sections 120B, 420, 406, 409, and 471 of the Indian Penal Code.
The case concerns alleged large-scale cheating of depositors by the Popular Group of Companies, its promoters, directors, and partners. Individuals named include Shri Thomas Daniel, Smt. Prabha Thomas, Smt. Rinu Mariam Thomas, Ms. Reeba Mary Thomas, and Smt. Ria Ann Thomas, among others.
Investigators allege that depositors were induced to invest in schemes operating in violation of regulatory norms, leading to significant financial losses.
Attachment and Prosecution Proceedings
The properties were attached through Provisional Attachment Orders dated 17 September 2021 and 29 December 2021.
These attachments were confirmed by the PMLA Adjudicating Authority.
The ED filed a Prosecution Complaint under Sections 44 and 45 of PMLA on 30 April 2022 (SC No. 392/2022), followed by a supplementary complaint on 31 July 2023.
During the investigation, Shri Thomas Daniel and Smt. Rinu Mariam Thomas were arrested on 9 August 2021.
Section 8(8) Petition and High Court Direction
The restitution order followed a petition filed under Section 8(8) of PMLA by the Competent Authority under the BUDS Act.
The move came after directions issued by the Kerala High Court on 17 December 2024 in WP(C) No. 22221/2024.
The ED submitted a no objection to the transfer of attached properties to the BUDS Authority to facilitate coordinated action and expedite relief to depositors.
Court’s Observations and Transfer Mechanism
The Special Court held that the interests of depositors must take precedence and permitted transfer of assets for equitable distribution.
The court noted that affected depositors are common beneficiaries under both PMLA and the BUDS Act frameworks. Objections raised by the accused remain open for consideration before the BUDS Authority.
The assets will be transferred to the Competent Authority under the Government of Kerala, represented by the District Collector, Ernakulam, for adjudication and distribution under the BUDS Act.
Significance of the Order
The restitution aligns anti-money laundering proceedings with investor protection mechanisms.
By enabling distribution through the BUDS framework, the court has prioritized compensation for depositors while preserving due process under PMLA.
The ED stated that it will continue pursuing economic offences while facilitating recovery for victims through statutory mechanisms.
Source: ED Press Release dated 19/02/2026 regarding Popular Group Case Restitution