BHOPAL: In a major crackdown on overseas assets created through suspected bank fraud, the Directorate of Enforcement (ED), Bhopal Zonal Office, has provisionally attached nine high-end foreign immovable properties in Dubai valued at Rs 51.70 crore.
The attachment, carried out on November 17, is linked to a massive Rs 1,266.63-crore fraud allegedly committed against the State Bank of India (SBI) by M/s Advantage Overseas Private Limited (AOPL), its directors, guarantors, and key beneficiaries — primarily its significant beneficial owner, Shrikant Bhasi.
According to the ED, the attached properties — a mix of luxury apartments and commercial spaces — are located in some of Dubai’s most premium areas, including Centurion Residence – Dubai Investment Park Second, Dubai Silicon Oasis, Liwa Heights (Al Thanyah Fifth), Business Bay, and World Trade Centre Residences.
Investigators said the properties are legally in the name of Bhasi’s daughter, after being gifted to her through multiple gift deeds executed between 2022 and 2023, allegedly to conceal the proceeds of crime (PoC).
ED officials said the properties were originally acquired using funds generated through illegal merchanting trade, diversion of bank credit, circular trading, fabrication of documents, and cross-border layering of illicit proceeds channelled through AOPL and its network of associate entities.
The probe revealed that AOPL had secured multiple Foreign Letters of Credit (FLCs) from SBI’s Shahpura Branch. Between April and May 2018, 12 FLCs worth USD 200 million (equivalent to Rs 1,266.63 crore) devolved on the bank after AOPL allegedly failed to meet margin requirements and defaulted during LC rollovers.
With AOPL unable to infuse funds and its fixed deposit margins depleted, SBI was forced to honour payments to overseas suppliers, resulting in heavy losses to the public-sector bank.
The ED alleges that these devolved FLC amounts formed the core of the proceeds of crime, which were later layered, laundered, and siphoned off through domestic and foreign shell entities before being used to buy Dubai real estate.
The investigation has reportedly uncovered a complex network of dummy companies, related firms, offshore entities, and beneficiary accounts used for fund diversion and asset acquisition across jurisdictions.
The agency said Bhasi exercised strategic control over AOPL and its group companies, enabling him to orchestrate the fund diversion and subsequent laundering.
Further investigation is underway to identify the complete money trail, additional overseas assets, and the involvement of other promoters and entities linked to the fraud.
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