A big case of loan fraud has been reported in India’s largest public sector bank, State Bank of India (SBI). The fraud has been reported in the SBI Shahpura Branch in Bhopal. A company, Advantage Overseas Private Limited (AOPL), took a loan from SBI but diverted the funds.
This is a major bank fraud by Advantage Overseas Private Limited (AOPL), its directors, guarantors, and related individuals, including the company’s main director and significant beneficial owner Shrikant Bhasi. This fraud caused a wrongful loss of ₹1,266.63 crore to the State Bank of India (SBI).
The Enforcement Directorate (ED) has attached nine luxurious apartments and commercial properties in Dubai worth more than ₹51 crore in connection with an alleged bank loan fraud case. The attached Dubai properties, valued at ₹51.70 crore, belong to Shrikant Bhasi. He had gifted these properties to his daughter. The ED’s Bhopal zonal office issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA) on Monday.
These assets are located in several premium areas of Dubai, including Centurion Residence – Dubai Investment Park Second, Dubai Silicon Oasis, Liwa Heights, Business Bay, World Trade Centre Residences. According to the ED, these properties were purchased using proceeds of crime generated through the bank fraud. SBI’s Shahpura Branch in Bhopal suffered the loss of ₹1,266.63 crore due to this alleged fraudulent activity.
“These devolved LCs formed a major part of the proceeds of crime, which were later layered and laundered through related entities and used to acquire foreign assets,” the ED said.
The ED further said that Bhasi exercised “strategic control” over AOPL and its group companies. The Dubai properties were later intentionally gifted to his daughter through gift deeds made during 2022–2023. The investigation revealed that AOPL and its associated entities acquired these assets using money generated through illegal merchanting trade transactions, diversion of bank funds, fabricated documents, circular trading, and layering of illicit funds.
The ED also found that 12 Foreign Letters of Credit (LCs) worth USD 200 million devolved on SBI during April–May 2018. This happened because AOPL failed to meet the margin requirements and could not bring in funds when required for LC rollover. As the fixed deposit margins were depleted and the company did not honour its commitments, SBI was forced to pay the overseas suppliers, causing a huge financial loss to the public sector bank.
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