ED Attaches Rs 43.52 Crore Assets in Ushdev International Bank Fraud Case

The Enforcement Directorate (ED) has attached assets worth Rs 43.52 crore in connection with a Rs 1438.45 crore bank fraud by Ushdev International Limited (UIL). The attachment includes land, buildings, and amounts in bank accounts. The agency’s action is under the Prevention of Money Laundering Act, 2002.

The Enforcement Directorate (ED) has attached movable and immovable properties, including land, buildings, and amounts in bank accounts, totaling Rs 43.52 crore. This action is linked to the Rs 1438.45 crore bank fraud involving Ushdev International Limited (UIL), the agency announced on Thursday. The ED's Mumbai Zonal office effected these attachments on September 10 under the Prevention of Money Laundering Act (PMLA), 2002.

The ED initiated the investigation based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI). The FIR includes charges under various sections of the Indian Penal Code, 1860 and the Prevention of Corruption Act, 1988. The ED's investigation uncovered that funds loaned by multiple banks to UIL were funneled to different entities disguised as advances and unsecured loans.

'After layering through multiple bank accounts, the funds were ultimately transferred to India-based companies where UIL's overseas subsidiaries hold major shares,' the agency stated. 'These subsidiaries were managed by UIL's directors and major shareholders. Further, credit facilities granted to UIL by multiple banks were mostly siphoned off to many overseas entities incorporated by its directors or shareholders,' the federal agency added.

As the investigation progressed, the ED identified and provisionally attached assets worth Rs 43.52 crore belonging to UIL's directors, shareholders, and their associated companies in India under Section 5 of PMLA, 2002. The agency noted that in February 2023, searches were conducted at UIL and related premises under the same law.

(With inputs from agencies.)