Indore (Madhya Pradesh): The Enforcement Directorate (ED) has provisionally attached land, valued at Rs 5.13 cr, owned by Neeta Shahra, wife of Umesh Shahra, in connection with a bank loan fraud and money laundering probe linked to Ruchi Global Limited.
The attachment was carried out by ED’s sub-zonal office in Indore, under the Prevention of Money Laundering Act (PMLA), 2002.
The attachment order was issued on February 17, the ED said in a press statement on Friday. The action forms part of an ongoing investigation into M/S Ruchi Global Ltd. (now renamed M/S Agrotrade Enterprises Ltd.), a company promoted by the late Kailash Chandra Shahra and Umesh Shahra. The ED probe stems from a FIR registered by the Central Bureau of Investigation (CBI), AC-IV, Vyapam, Bhopal, against the company and its associates under Sections 13(2) and 13(1)(d) of the Prevention of Corruption Act, 1988 and Section 120-B read with Section 420 of the Indian Penal Code, 1860, it said.
According to ED, the company allegedly defrauded a consortium of banks led by Bank of Baroda (erstwhile Dena Bank) to the tune of over Rs 188.35 cr.
This is the latest development in the case, following ED searches conducted in December 2025 at the premises of Umesh Shahra and others in connection with related bank fraud allegations involving Ruchi Group entities. The ED stated that further investigation is in progress to trace additional proceeds of crime and identify all parties involved. The provisional attachment aims to prevent dissipation of assets derived from the alleged money laundering activities.
WHAT INVESTIGATIONS REVEALED
Investigations revealed that the accused dishonestly obtained credit facilities and Letters of Credit based on forged, fabricated and manipulated documents, without any genuine underlying trade transactions.
The proceeds from these facilities were allegedly diverted and siphoned off through investments in group companies, loans and advances to associate and group concerns.
The illegally obtained funds were then layered through a complex web of interlinked entities under common ownership and control, before being routed back to the borrower company. These siphoned funds were systematically utilised to acquire various properties, including the attached land.
