Mumbai, Feb 13: The Enforcement Directorate (ED), Mumbai Zonal Office, has provisionally attached immovable properties worth Rs 132.85 crore, including plots of land and office units in Mumbai and Raigad districts, under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the ongoing investigation into alleged bank fraud by M/s Ushdev International Limited (UIL).
With the latest attachment, the total value of properties seized by the ED in the case has reached Rs 176.37 crore.
The ED’s probe was initiated based on an FIR registered by the Banking Security & Fraud Branch (BS & FB), Central Bureau of Investigation (CBI), Mumbai, following a complaint filed by the State Bank of India (SBI) on behalf of an SBI-led consortium of banks, alleging a bank fraud of approximately Rs 1,438 crore involving UIL and its associated entities.
The ED’s probe revealed that the accused allegedly availed Cash Credit (CC), Letters of Credit (LCs) and Buyers’ Credit by submitting forged trade documents without any legitimate underlying business transactions. Consortium banks were allegedly induced to release funds, which were routed through shell and controlled entities, creating circular transactions with no commercial justification.
Further findings indicated that significant portions of Cash Credit funds were diverted to related entities that were dormant or not engaged in genuine business activities. The funds were eventually routed to Uttam Galva Group companies, suggesting layering and diversion of proceeds of crime.
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Investigation also found that LC proceeds were used to repay Buyers’ Credit facilities, financing imports that were re-exported to overseas entities. Export proceeds were either not repatriated to India or diverted to overseas subsidiaries and connected companies.
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