Bank 'fraud' case: ED attaches RS 51-cr worth apartments in Dubai

New Delhi, Nov 18 (PTI) Nine luxurious apartments and commercial buildings in Dubai worth more than Rs 51 crore have been attached under the anti-money laundering law in an alleged bank loan fraud case, the Enforcement Directorate (ED) said on Tuesday.

The federal probe agency's Bhopal zonal office issued a provisional order under the Prevention of Money Laundering Act (PMLA) on Monday to attach these assets.

The investigation pertains to a bank fraud by Advantage Overseas Private Limited (AOPL), its directors, guarantors and related people, including its main director/significant beneficial owner Shrikant Bhasi, which caused wrongful loss of Rs 1,266.63 crore to the State Bank of India (SBI), the ED said in a statement.

The attached properties, worth Rs 51.70 crore, belong to Bhasi and were gifted by him to his daughter.

The assets are located in Centurion Residence - Dubai Investment Park Second, Dubai Silicon Oasis, Liwa Heights (Al Thanyah Fifth), Business Bay and World Trade Centre Residences, it said.

The properties were acquired out of the proceeds of crime generated from a "bank fraud" case where the SBI Shahpura Branch in Bhopal incurred wrongful loss to the tune of Rs 1,266.63 crore, it said.

Bhasi, according to the ED, exercised "strategic" control over AOPL and its associated entities.

The said properties were later "deliberately" gifted to his daughter through gift deeds executed in 2022-2023. The properties were acquired from funds generated by AOPL and its group entities through illegal merchanting trade transactions, diversion of bank funds, fabrication of documents, circular trading, and layering of illicit proceeds, the agency alleged.

It was found that 12 Foreign Letters of Credit (FLCs) amounting to USD 200 million (about Rs 1,266.63 crore) were devolved upon SBI between April-May 2018 after AOPL "failed" to fulfil the mandatory margin requirements and could not infuse funds at the time of LC rollover.

Due to depletion of fixed deposit margins and the company's failure to honour its obligations, SBI was compelled to make payments to overseas suppliers, resulting in substantial loss to the public sector bank, it added.

"These devolved LCs constitute a major component of the proceeds of crime, which were subsequently layered and laundered through related entities and used for acquiring foreign assets," the ED said. PTI NES RHL