The Directorate of Enforcement (ED) in Mumbai has provisionally attached movable and immovable properties, including land, buildings, and fixed deposits worth Rs. 43.52 crore on September 10, 2024. This action was taken under the Prevention of Money Laundering Act (PMLA) 2002 in connection with a bank fraud case involving M/s Ushdev International Limited (UIL) and others.
Background of the Investigation
The ED’s investigation began based on an FIR registered by the Central Bureau of Investigation (CBI), Banking Securities & Frauds Cell (BS & FC) Branch, Mumbai. The FIR was filed under various sections of the Indian Penal Code (IPC) 1860 and the Prevention of Corruption Act 1988, in relation to a massive bank fraud involving Rs. 1,438.45 crore.
Earlier, The Supreme Court stayed a Bombay High Court order permitting Suman Vijay Gupta, the chairperson of a Mumbai-based private company, to travel to the UAE after taking note of a case in which she is accused of defrauding State Bank of India of Rs 3,300 crore. Gupta is the chairperson of Ushdev International Limited (UIL). Click here to read more news related to Bank Frauds.
How the Fraud Took Place
The investigation revealed that multiple banks had granted loans to M/s UIL, but the funds were misused and diverted to various entities under the guise of advances and unsecured loans. The funds were then transferred through multiple bank accounts before eventually landing in companies based in India. These companies were majorly owned by the overseas subsidiaries of M/s UIL, which were managed and controlled by the directors and major shareholders of UIL.
M/s UIL had secured both fund-based and non-fund-based credit facilities from multiple banks. However, instead of using these funds for legitimate business purposes, a large portion was siphoned off to various overseas entities. These overseas entities were created and controlled by UIL’s directors, promoters, and shareholders.
Actions Taken by the ED
During the investigation, the ED identified assets worth Rs. 43.52 crore belonging to the directors and shareholders of M/s Ushdev International Limited and their related companies in India. These assets have been provisionally attached under Section 5 of the PMLA, 2002. Earlier in February 2023, the ED had conducted searches under PMLA at the premises of M/s UIL and other connected entities and individuals. Click here to read more news related to Bank Frauds.
Ongoing Investigation
The investigation is still ongoing, and further actions are expected as more evidence is uncovered. This case highlights the ED’s ongoing efforts to tackle financial fraud and money laundering, ensuring that those involved are held accountable under the law.
Very sad state of affair is that name of the bank / banks is no where mentioned