Nine luxury properties in Dubai attached by ED in Rs 1266.63 crore Madhya Pradesh bank fraud case

Bhopal: As many as nine luxurious foreign immovable properties in Dubai have been attached provisionally by the Enforcement Directorate (ED) in connection with a Rs 1266.63 crore fraud case committed by Madhya Pradesh branch of the State Bank of India (SBI). The attached properties are in the form of apartment and commercial spaces, having a worth of Rs 51.70 crore. The concerned luxurious foreign 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. During the course of investigation, the properties were found to be acquired out of Proceeds of Crime (POC) generated in connection with the bank fraud case. The wrongful loss to the tune of Rs 1266.63 crore was caused to the SBI by M/s Advantage Overseas Private Limited (AOPL), its directors, guarantors and related persons including its main director/significant beneficial owner, Shrikant Bhasi. ED probe 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 20222023, 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 investigation further revealed that 12 Foreign Letters of Credit (FLCs) amounting to USD 200 million (approx. Rs.1266.63 Crore) were devolved upon SBI between AprilMay 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 companys 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. ED 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. Further investigations are underway.