Enforcement Directorate Mumbai attaches assets worth ₹43.52 crore in bank fraud case linking Ushdev International

The Enforcement Directorate has connected the properties underneath the provisions of Prevention of Cash Laundering Act (PMLA), 2002
| Photograph Credit score: X/@dir_ed

“The Enforcement Directorate (ED) of Mumbai zonal workplace has provisionally connected movable and immovable properties amounting to ₹43.52 crore on September 10, 2024,” officers from the ED stated in a press assertion on Thursday [September 12, 2024].

The properties are land, constructing and quantities mendacity in financial institution accounts as mounted deposits. The investigating Company has connected the properties underneath the provisions of Prevention of Cash Laundering Act (PMLA), 2002 within the case of financial institution fraud by M/s Ushdev Worldwide Restricted [UIL] and others.

“The ED initiated investigation based mostly on a primary data report [FIR] registered by Central Bureau of Investigation [CBI], Financial institution Safety and Fraud Zone [BS and FC] Department, Mumbai, underneath varied Sections of the Indian Penal Code, 1860 and Prevention of Corruption Act, 1988 within the case of financial institution fraud of ₹1,438.45 crore,” the officers stated.

“The investigation revealed that the funds which had been granted as mortgage by a number of banks to M/s UIL had been diverted to totally different entities within the guise of advances and unsecured loans. Later, after layering by a number of financial institution accounts, the stated funds had been in the end transferred to India-based firms whereby the abroad subsidiaries of M/s UIL are main shareholders. These subsidiaries had been managed and managed by administrators and main shareholders of M/s UIL,” an ED official stated.

“Additional, M/s UIL was granted credit score services, fund based mostly, and non-fund based mostly, from a number of banks and out of the stated funds granted by the banks, majority of the funds had been siphoned off by M/s UIL to many abroad entities which had been included by its administrators, promoters or shareholders,” the officers added.

“Through the course of investigation, belongings price ₹43.52 crore of administrators and shareholders of M/s UIL and their group of firms mendacity in India had been recognized, that are provisionally connected underneath Part 5 of PMLA, 2002,” ED officers stated.

Earlier, in February 2023, searches underneath PMLA had been performed on the premises of M/S UIL and different associated entities and individuals. Additional investigation into the matter is underneath progress.