In a major crackdown on alleged financial fraud, the Enforcement Directorate (ED) has seized high-value assets in the United Kingdom linked to a massive bank loan laundering case. The probe targets a staggering Rs 1,400 crore siphoned off from a consortium of banks.
London Property Worth Rs 150 Crore Attached
The central agency announced on Wednesday that it has attached immovable property valued at approximately Rs 150 crore located in a prime area near Buckingham Palace in London. These assets are connected to Nitin Kasliwal, the former Chairman and Managing Director (CMD) of the well-known textile conglomerate, S Kumars Nationwide Ltd.
The action follows searches conducted at Kasliwal's premises on December 23, during which the ED seized crucial documents and digital devices. The investigation alleges that Kasliwal orchestrated a complex scheme to cheat banks and divert funds overseas.
Complex Web of Offshore Trusts and Companies
According to the ED's findings, the laundered money was funneled through a sophisticated network of entities spread across multiple offshore tax havens. These jurisdictions included the British Virgin Islands, Jersey, and Switzerland.
The agency stated that the funds, acquired fraudulently from banks, were moved out of India under the guise of foreign investments. Subsequently, these funds were used to purchase expensive immovable assets abroad, which were then hidden using a convoluted corporate structure.
A detailed analysis revealed that Nitin Kasliwal established the 'Catherine Trust' (originally called Surya Trust), where he and his family members were the primary beneficiaries. This trust held control over a company named Catherine Property Holding Ltd, which was incorporated in Jersey and the British Virgin Islands.
It was this offshore company that ultimately held the legal ownership of the multi-crore London property, effectively masking the true ownership from Indian authorities.
Diverted Funds and Concealed Assets
The ED's official statement elaborated on the modus operandi. "Investigation found that Nitin Kasliwal through S Kumars Nationwide Ltd cheated the consortium of banks to the tune of Rs 1,400 crore," the agency said. It further accused him of diverting the funds outside India and acquiring foreign assets which were "concealed through complex structure of private trust and companies in foreign jurisdictions."
This case highlights the increasing focus of Indian investigative agencies on tracking and seizing high-value overseas assets purchased with the proceeds of financial crimes committed within the country. The attachment of property in a location as prominent as central London marks a significant step in the ongoing probe.
