ED seizes Rs 3.66 crore life insurance policies in Rs 1,200 crore SBI fraud case

The Directorate of Enforcement (ED), Bhopal Zonal Office, has provisionally attached two Investment Linked Life Insurance Policies maintained with Zurich International Life Ltd having an aggregate surrender value of Rs. 3.66 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The attachment is part of the agency's ongoing investigation against M/s Advantage Overseas Pvt. Ltd. (AOPL) and its promoter, Shrikant Bhasi.

The ED initiated its investigation on the basis of an FIR registered by the Central Bureau of Investigation (CBI), BSFB, New Delhi, against M/s Advantage Overseas Pvt Ltd., its directors and unknown public servants for allegedly causing a wrongful loss of Rs. 1,266.63 crore to the State Bank of India through fraudulent merchanting trade transactions.

According to the ED, its investigation under the PMLA revealed that AOPL and its promoters fraudulently availed banking facilities by carrying out sham merchanting trade transactions, circular trading, fabrication of trade documents and diversion of bank funds to various domestic and overseas entities.

The agency said the Proceeds of Crime were layered through several companies controlled by Shrikant Bhasi and invested in various movable and immovable assets in India and abroad.

During the investigation, the ED identified two Investment Linked Life Insurance Policies maintained with Zurich International Life Ltd. in the name of Shrikant Bhasi. The investigation revealed that the policies were acquired and maintained during the period surrounding the commission of the scheduled offence and were funded through overseas accounts and entities connected with Bhasi.

The ED further found that in April 2026, Shrikant Bhasi sought to surrender both insurance policies and requested that the surrender proceeds be remitted to his bank account in India.

Considering the likelihood of dissipation of the Proceeds of Crime, the ED provisionally attached the two insurance policies having an aggregate surrender value of approximately Rs. 3.66 crore under Section 5(1) of the PMLA, 2002.

The agency said it had earlier provisionally attached nine immovable properties situated in Dubai, UAE, valued at approximately Rs. 51.70 crore, along with domestic properties worth about Rs. 111 crore in the same case.

The latest attachment forms part of the ED's continuing investigation into tracing and attaching the Proceeds of Crime generated from the scheduled offence.

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