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New Delhi, Nov 18 (IANS) The Enforcement Directorate (ED), Bhopal Zonal Office, has provisionally attached nine luxurious foreign immovable properties located in Dubai (UAE) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The attached properties are in the form of apartments and commercial spaces, worth Rs 51.70 crore.
According to the ED, the said attachment made on Monday is in connection with a bank fraud committed by M/s Advantage Overseas Private Limited (AOPL), its directors, guarantors and related persons including its Chief Director/significant beneficial owner, Shrikant Bhasi, causing wrongful loss of Rs 1266.63 crore to State Bank of India.
The attached properties belong to Shrikant Bhasi, who had gifted them to his daughter.
“The said foreign properties located at Centurion Residences – Dubai Investment Park Second, Dubai Silicon Oasis, Liwa Heights (Al Thanya Fifth), Business Bay and World Trade Center Residences were acquired from the proceeds of crime (POC) generated in connection with the bank fraud case where SBI, Shahpura branch has suffered a wrongful loss of Rs 1266.63 crore,” the ED said in its press note.
ED investigation revealed that Shrikant Bhasi, who had strategic control over AOPL and its associated entities, had acquired the said foreign assets in Dubai.
“These properties were subsequently deliberately gifted to the POC, without any consideration, through gift deeds executed in 2022-2023 to conceal the POC,” the ED said.
According to the central agency, the assets were acquired from funds generated by AOPL and its group entities through “illegal business transactions, diversion of bank funds, fabrication of documents, circular trading and layering of illegal income”.
“During investigation, it was revealed that 12 foreign letters of credit (FLCs) amounting to US$ 200 million (approximately Rs 1266.63 crore) were transferred to SBI between April-May 2018 as AOPL failed to meet the mandatory margin requirements and could not fund the LC at the time of rollover,” it said.
Due to reduction in fixed deposit margins and failure by the company to meet its obligations, the bank was forced to make payments to foreign suppliers, resulting in significant losses for the public sector bank.
These transferred LCs are a major component of POCs, which are then channeled and laundered through related entities and used to acquire offshore assets.
The ED investigation has also revealed a network of domestic and foreign entities used for layering, diversion and acquisition of assets in India and abroad.
It was also noted that further investigation is ongoing.
–IANS
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