The Enforcement Directorate has attached an immovable property worth ₹150 crore near Buckingham Palace in London in connection with an alleged ₹1,400-crore bank loan fraud.
The loan fraud, linked to money laundering, involves textile major S Kumars Nationwide Ltd (SKNL) and its former chairman and managing director Nitin Kasliwal, the agency said on Wednesday.
The property valued at ₹150 crore near Buckingham Palace is held under the “beneficial ownership” of Nitin Shambhukumar Kasliwal and his family members, the agency said.
Kasliwal is accused of defrauding a consortium of Indian banks of ₹1,400 crore,
it said.
An ED official said the asset was attached following a provisional order that was issued under the Prevention of Money Laundering Act (PMLA), and the seizure would help in tracing and securing overseas assets allegedly acquired using proceeds of crime.
“The attachment of the London property is among the most high-profile overseas asset seizures in the case so far,” he said.
After attaching assets located abroad, the ED approaches its counterpart agencies in that country to take possession of such properties under the criminal provisions of the anti-money laundering law.
The agency has alleged that Kasliwal, through SKNL, cheated the consortium of banks and “diverted” the funds outside India in the guise of foreign investments and subsequently acquired immovable assets abroad, which were “concealed” through a complex structure of private trusts and companies in foreign jurisdictions.
The ED conducted raids on December 23 and seized some documents and devices.
“A detailed analysis of the said material revealed that Nitin Kasliwal established a complex network of trusts and companies in multiple offshore tax havens, including the British Virgin Islands, Jersey, and Switzerland,” the agency said.
“The investigation found that Nitin Kasliwal set up the Catherine Trust (formerly Surya Trust) in which he and his family members were the primary beneficiaries.”
This trust “controlled” a company based in Jersey and the British Virgin Islands named Catherine Property Holding Limited (CPHL), which, in turn, held ownership of the immovable property in London that has been attached, it said.
Sources said SKNL was one of the top 50 bank defaulters in the country.
“Further investigation is under progress to identify additional assets, examine fund flows and determine the full extent of the alleged laundering of bank funds,” the ED official said.