The Enforcement Directorate (ED) has seized assets worth over ₹300 crore during searches at the premises of M/s Advantage Overseas Pvt. Ltd. (AOPL), a company accused of defrauding the State Bank of India (SBI) of ₹1,266.63 crore. The raids, conducted on August 4 under the Prevention of Money Laundering Act (PMLA), 2002, targeted directors, employees, and alleged benamidars of the company.
Investigators allege that AOPL grossly inflated its turnover by as much as 100 times to obtain massive loans from banks. The company then diverted these funds through 73 different entities, disguising them as unsecured loans to itself and its associated firms. After misusing the funds, AOPL declared itself a Non-Performing Asset (NPA), prompting SBI to approach the National Company Law Tribunal (NCLT).
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Benami Properties and Foreign Investments Uncovered
During the searches, ED officials discovered documents linking the company’s directors and associates to high-value properties both in India and abroad. Many of these were allegedly purchased using funds siphoned from the loans and registered in the names of employees, shell firms, and benami companies. Evidence of complex financial layering was also recovered, including records that appear to legitimise illicit income through fraudulent transactions.
The seized assets include luxury properties, commercial holdings, and high-end vehicles, collectively valued at over ₹300 crore. The ED suspects that the true value of the diverted assets may be significantly higher, with investigations into overseas holdings still ongoing.
Case Origin and CBI Involvement
The ED’s probe was initiated on the basis of a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) at BS&FC New Delhi. The FIR charges AOPL, its directors, and other unnamed individuals with criminal conspiracy, cheating, and forgery under the Indian Penal Code (IPC), as well as offences under the Prevention of Corruption Act, 1988.
According to the CBI, AOPL’s fraudulent actions caused SBI a loss exceeding ₹1,266 crore. The alleged scheme involved falsifying financial statements, manipulating trade records, and engaging in sham transactions to create the illusion of robust business activity.
The ED has stated that further searches, seizures, and asset freezes will follow as they unravel the money trail across multiple jurisdictions. The case adds to a growing list of high-value banking frauds under active investigation in India.