The Enforcement Directorate has attached immovable properties worth Rs 132.85 crore in the ongoing money laundering investigation involving M/s Ushdev International Limited. These assets include plots of land and office units situated across Mumbai and Raigad districts of Maharashtra. The attachment was carried out under the Prevention of Money Laundering Act and is part of a broader probe into a bank fraud of approximately Rs 1,438 crore. With this latest action, the ED has now attached assets totaling Rs 176.37 crore in this case.
How the Investigation Began
The probe began after the BS and FB unit of the CBI in Mumbai registered an FIR based on a complaint from the State Bank of India. SBI filed the complaint on behalf of an SBI‑led consortium of banks that reported being defrauded by Ushdev International Limited. The alleged fraud involved misuse of credit facilities, manipulation of trade documents and large scale diversion of funds.
Fraudulent Credit Facilities and False Documentation
According to the ED, the accused obtained Cash Credit, Letters of Credit and Buyers’ Credit facilities by submitting forged and fabricated trade documents. These documents did not correspond to any genuine underlying business transactions. Yet they were used to convince the lending banks that the transactions were valid, which led to the release of substantial funds.
A key pattern identified was how LC proceeds were directed to shell and supplier entities controlled by the accused. These entities existed only as conduits. They did not carry out genuine trade, but they enabled the creation of a circular chain of transactions designed to disguise the movement of funds. Once routed through multiple intermediaries, the money found its way back into the Ushdev group of companies without any commercial justification.
Diversion of Funds and Shell Entity Network
The ED discovered extensive diversion of Cash Credit funds to related entities. These transfers were recorded as advances, but the recipient companies were dormant or barely functional. Such entities played an essential role in layering the Proceeds of Crime. Investigators established that the funds were ultimately routed to companies associated with the Uttam Galva Group, which added another layer of financial complexity to the money trail.
Manipulated Import and Export Transactions
The investigation further revealed manipulation of import and export operations. Fraudulently obtained LC proceeds were used to repay Buyers’ Credit facilities that had financed imports. These imported goods were then re-exported to overseas related entities. However, the export proceeds were either not brought back to India or were diverted to the group’s overseas subsidiaries and connected entities. This deliberate non‑repatriation of export proceeds strengthened the pattern of laundering.
Properties Attached by the ED
The properties attached include land parcels and office spaces in Mumbai and Raigad districts. These assets are believed to have been acquired using Proceeds of Crime generated through the fraud. Adding the latest attachment of Rs 132.85 crore, the total value of properties provisionally attached in this case now stands at Rs 176.37 crore. This reflects the ED’s ongoing effort to secure assets before they can be further transferred or concealed.
Why This Case Is Significant
This case shows how financial fraud can be carried out using forged documentation, sham supplier entities and circular trading transactions. It highlights the scale at which credit facilities can be misused when oversight is evaded and trade documents are falsified. The use of dormant entities, overseas subsidiaries and layered transactions illustrates how money laundering networks are structured to obscure the origin and movement of funds. The ED’s attachments are an important step in tightening enforcement and preventing further dissipation of assets linked to the alleged fraud.
Next Steps in the Investigation
The Enforcement Directorate has stated that further investigation is in progress. The agency is tracing additional shell entities, mapping international fund movements and reviewing evidence to identify more assets connected to the laundering scheme. More provisional attachments and legal actions may follow as the investigation continues to unfold.
Source: ED Press Release dated 13/02/2026: UIL Fraud Case