Enforcement Directorate Mumbai attaches assets worth ₹43.52 crore in bank fraud case linking Ushdev International

The Enforcement Directorate has attached the properties under the provisions of Prevention of Money Laundering Act (PMLA), 2002
| Photo Credit: X/@dir_ed

“The Enforcement Directorate (ED) of Mumbai zonal office has provisionally attached movable and immovable properties amounting to ₹43.52 crore on September 10, 2024,” officials from the ED said in a press statement on Thursday [September 12, 2024].

The properties are land, building and amounts lying in bank accounts as fixed deposits. The investigating Agency has attached the properties under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in the case of bank fraud by M/s Ushdev International Limited [UIL] and others.

“The ED initiated investigation based on a first information report [FIR] registered by Central Bureau of Investigation [CBI], Bank Security and Fraud Zone [BS and FC] Branch, Mumbai, under various Sections of the Indian Penal Code, 1860 and Prevention of Corruption Act, 1988 in the case of bank fraud of ₹1,438.45 crore,” the officials said.

“The investigation revealed that the funds which were granted as loan by multiple banks to M/s UIL were diverted to different entities in the guise of advances and unsecured loans. Later, after layering through multiple bank accounts, the said funds were ultimately transferred to India-based companies wherein the overseas subsidiaries of M/s UIL are major shareholders. These subsidiaries were controlled and managed by directors and major shareholders of M/s UIL,” an ED official said.

“Further, M/s UIL was granted credit facilities, fund based, and non-fund based, from multiple banks and out of the said funds granted by the banks, majority of the funds were siphoned off by M/s UIL to many overseas entities which were incorporated by its directors, promoters or shareholders,” the officials added.

“During the course of investigation, assets worth ₹43.52 crore of directors and shareholders of M/s UIL and their group of companies lying in India were identified, which are provisionally attached under Section 5 of PMLA, 2002,” ED officials said.

Earlier, in February 2023, searches under PMLA were conducted on the premises of M/S UIL and other related entities and persons. Further investigation into the matter is under progress.