The Directorate of Enforcement (ED), Mumbai Zonal Office, has provisionally attached immovable properties worth ₹132.85 crore in the case of M/s Ushdev International Limited (UIL). The attached assets include plots of land and office units located in Mumbai and Raigad districts of Maharashtra. The move has been executed under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated based on an FIR registered with BS & FB, CBI, Mumbai, following a complaint by the State Bank of India on behalf of an SBI-led consortium of banks. The complaint alleged a bank fraud of approximately ₹1,438 crore.
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Fraudulent Documents and Shell Company Network
ED’s probe revealed that the accused submitted forged and fabricated trade documents to fraudulently avail Cash Credit, Letters of Credit (LCs), and Buyers’ Credit facilities. No genuine underlying business transactions existed. Based on these false documents, consortium banks were induced to release funds.
According to ED, the LC proceeds were routed to shell and controlled supplier entities that acted merely as conduits. Subsequently, the funds were layered through multiple intermediary entities and routed back to Ushdev group companies. This circular flow of funds created the appearance of legitimate transactions without any commercial justification.
Misuse of Cash Credit and Buyers’ Credit
Further investigation revealed that a substantial portion of Cash Credit funds was diverted to related entities under the guise of advances. These entities were largely dormant or not engaged in any genuine business activities. Ultimately, the funds reached Uttam Galva Group companies, highlighting clear layering and diversion of proceeds of crime.
Additionally, the fraudulently obtained LC proceeds were used to repay Buyers’ Credit facilities, which financed imports that were subsequently re-exported to overseas related entities. The proceeds of such exports were not repatriated to India. Where realized abroad, the funds were diverted to Ushdev’s international subsidiaries and connected entities, further complicating the money trail.
ED’s Action and Way Forward
ED clarified that the attached properties, including plots and office units in Mumbai and Raigad, are under the control of the accused and their associates. The move is a decisive step to secure proceeds of crime generated through the bank fraud and money-laundering.
The agency noted that the case involved an extensive network of shell companies and intermediary entities designed to obscure the actual direction of funds and create the illusion of legitimate cash flows. The investigation is ongoing, and based on emerging evidence, further attachments and legal actions are possible.
ED reiterated that such bank frauds and money-laundering activities directly impact public interest and the trust in financial institutions. The agency emphasized that stringent measures will continue against economic offenders, ensuring that all fund diversions and asset manipulations are traced and secured.
The ED’s latest action in the Ushdev International Limited case underscores the agency’s proactive and decisive approach. The attachment of assets worth ₹132.85 crore amidst the ₹1,438 crore bank fraud, orchestrated via forged documents, shell companies, and intermediary networks, highlights ED’s commitment to tracing and securing proceeds of crime.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
