The Directorate of Enforcement (ED) has provisionally attached two investment-linked life insurance policies with a combined surrender value of ₹3.66 crore in connection with an alleged ₹1,266.63 crore bank fraud and money laundering case. The action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. According to the agency, the policies were maintained with Zurich International Life Ltd. and are linked to Shrikant Bhasi, promoter of Advantage Overseas Pvt. Ltd. (AOPL).
The attachment forms part of the ED’s ongoing money laundering investigation against AOPL and its promoter. Investigators said financial records and transaction details indicated that the life insurance policies had been funded through connected overseas entities. The agency also found that the policies were reportedly being prepared for surrender, prompting it to provisionally attach them to prevent the possible transfer or dissipation of assets.
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The investigation stems from a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI). According to the allegations, Advantage Overseas Pvt. Ltd., its directors, and certain unknown public servants caused a wrongful loss of ₹1,266.63 crore to the State Bank of India (SBI) through fraudulent merchanting trade transactions. Based on the FIR, the ED initiated a money laundering investigation to trace financial transactions and assets linked to the alleged proceeds of crime.
The agency believes the alleged fraud involved complex financial structures and cross-border transactions. During the course of the investigation, officials examined banking records, financial documents, and overseas investments before identifying the insurance policies as suspected proceeds of crime and attaching them under the PMLA.
According to sources familiar with the investigation, the ED is also examining whether other overseas assets or investment instruments were used to park or conceal the alleged illicit funds. If additional assets are identified during the probe, they could also face attachment under the provisions of the PMLA.
Financial crime experts note that overseas life insurance policies, investment products, and offshore financial structures are increasingly being scrutinized in money laundering investigations, as they can potentially be used to disguise or move illicit funds. Such cases often require detailed forensic analysis of financial transactions and close international cooperation between enforcement agencies.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said that foreign investment vehicles and insurance products have become increasingly complex instruments in large financial crime cases, making them challenging for investigators. He added that timely attachment of suspected assets is crucial to preserving the proceeds of crime and preventing their diversion during the course of an investigation.
The investigation remains ongoing. The ED is continuing to examine financial records, overseas transactions, and other potential assets to establish the full extent of the alleged money laundering network. Further attachments and legal action may follow as the investigation progresses.
