ED attaches nine UAE-based assets in Rs 1266.63-cr SBI fraud case

NEW DELHI: The Enforcement Directorate (ED) has attached nine luxurious foreign immovable properties located in Dubai (UAE) in the Rs 1266.63 crore State Bank of India (SBI) fraud case allegedly done by Advantage Overseas Private Limited (AOPL), the agency said on Tuesday.

The attached properties are in the form of apartments and commercial spaces, worth Rs 51.70 crore. These properties were attached on November 17.

ED said the move was taken in the matter of bank fraud committed by AOPL, its directors, guarantors, and related persons, including its main director and significant beneficial owner, Shrikant Bhasi, which caused wrongful loss of Rs 1266.63 crore to SBI.

As per the ED, the attached properties belong to Shrikant Bhasi, who gifted them to his daughter.

ED’s Bhopal zonal office attached these foreign immovable properties located in Dubai under the Prevention of Money Laundering Act (PMLA), 2002.
ED said these foreign assets, situated in Centurion Residence – Dubai Investment Park Second, Dubai Silicon Oasis, Liwa Heights (Al Thanyah Fifth), Business Bay, and World Trade Centre Residences, were found to be acquired out of Proceeds of Crime (POC) generated in connection with the bank fraud case where SBI, Shahpura branch has incurred wrongful loss to the tune of Rs 1266.63 crore.

ED said its investigation revealed that Shrikant Bhasi, who exercised strategic control over AOPL and its associated entities, had acquired the said foreign properties in Dubai.

“These properties were later deliberately gifted to his daughter through gift deeds executed in 2022-2023, without any consideration to hide the POC. 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 financial probe agency mentioned in its statement.

During the investigation, ED said, it was revealed that 12 Foreign Letters of Credit (FLCs) amounting to USD 200 million (approximately Rs1266.63 crore) were devolved upon SBI between April and 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, the bank was compelled to make payments to overseas suppliers, resulting in substantial loss to the public sector bank. These devolved LCs constitute a major component of the POC, which were subsequently layered and laundered through related entities and used for acquiring foreign assets,” it said.

The ED further said its investigation has also uncovered a network of domestic and foreign entities used for layering, diversion of funds, and acquisition of assets in India and abroad. (ANI)