ED Attaches ₹111 Cr Assets in Advantage Overseas SBI Fraud

The Enforcement Directorate (ED) has provisionally attached domestic immovable properties worth ₹111.32 crore in a major bank fraud case involving Advantage Overseas Private Limited (AOPL), its directors, guarantors and related persons, including promoter and significant beneficial owner Shrikant Bhasi.

According to ED’s Bhopal Zonal Office, the attached assets are located across Madhya Pradesh, Maharashtra and Kerala and are alleged to represent proceeds of crime generated from a ₹1,266.63 crore fraud against State Bank of India, Shahpura Branch, Bhopal.

Earlier in November 2025, ED had attached nine luxury properties in Dubai valued at ₹51.70 crore in the same case. With the latest domestic attachment, the total value of assets provisionally seized in the AOPL matter now stands at around ₹163.02 crore.

Alleged SBI Fraud via Merchanting Trade and Circular Transactions

ED’s investigation under the Prevention of Money-laundering Act (PMLA), 2002 stems from a bank fraud case registered by SBI and probed by central agencies. AOPL and its associated entities are alleged to have used a mix of:

• Fraudulent merchanting trade transactions,
• Circular trading between related entities,
• Fabrication of import–export and trade documents, and
• Diversion of bank funds,

to create a large volume of apparently genuine commerce, while in reality generating and layering illicit proceeds.

Between April and May 2018, SBI’s Shahpura Branch had issued 12 Foreign Letters of Credit (FLCs) amounting to about USD 200 million (₹1,266.63 crore) in favour of overseas suppliers linked to AOPL’s trading activities. When the company allegedly failed to maintain required margins and could not fund LC rollovers, the LCs devolved on SBI, forcing the bank to make payments and absorb the loss.

ED maintains that these devolved LCs form a major component of the proceeds of crime now being traced through domestic and foreign assets.

Network of Group Companies and Alleged Fund Diversion

The agency says its probe has uncovered a web of group companies and nominee-held entities used to move and disguise funds originating from the SBI exposure. These include:

• AMG Group entities,
• Commercial Amplitude Pvt Ltd,
• AMG Management Services Pvt Ltd,
• and other companies in the names of employees, relatives and associates.

While many of these entities appear on paper to be independent, ED has stated that they were effectively controlled by Shrikant Bhasi and used to:

• Route funds received from SBI-backed transactions,
• Layer money through multiple bank accounts and intra-group transfers, and
• Acquire high-value properties in India and abroad.

During search operations in August 2025, ED claims to have seized property documents, agreement papers and digital evidence pointing to this network of diversion and layering.

From Dubai Luxury Assets to Domestic Properties

In November 2025, ED announced the provisional attachment of nine luxury apartments and commercial spaces in Dubai, collectively worth about ₹51.70 crore. These properties, located in developments such as Centurion Residence, Dubai Silicon Oasis, Liwa Heights, Business Bay and World Trade Centre Residences, were said to have been acquired using funds generated by AOPL and related entities.

According to ED, the immovable assets were later gifted to Bhasi’s daughter through gift deeds executed in 2022–2023 without consideration, allegedly in an attempt to distance them from the underlying fraud.

The new domestic attachment focuses on properties in Madhya Pradesh, Maharashtra and Kerala, which ED alleges were purchased using layered funds flowing out of the same bank fraud. Together, the foreign and domestic properties are claimed to represent a portion of the proceeds from the ₹1,266.63 crore exposure to SBI.

ED’s Provisional Attachment and What Comes Next

Under PMLA, a provisional attachment order:

• Prevents the transfer, sale or encumbrance of the attached properties,
• Is subject to confirmation by the Adjudicating Authority, which examines whether the assets qualify as proceeds of crime, and
• Can ultimately lead to confiscation or release depending on judicial findings.

ED has clarified that its investigation into AOPL and associated entities is ongoing, with further scrutiny of trade documentation, bank records and corporate relationships expected. Parallel processes on the banking and enforcement side will focus on recovery prospects and individual accountability.

As with all such cases, the individuals and entities named remain subject to due process, and questions of guilt or liability will be finally determined by competent courts.

Why the Advantage Overseas Case Matters for Banks and Trade Finance

For banks, trade financiers and large corporates, the Advantage Overseas case is a sharp reminder of how complex trade-finance structures can be misused when controls are weak:

• Merchanting trade risk – Back-to-back cross-border trades involving third-country shipments carry heightened counterparty and KYC risks, especially when documentation chains are long and opaque.
• LC monitoring and margin discipline – Large exposures through foreign letters of credit require strict enforcement of margin requirements, collateral monitoring and early escalation when rollover risk rises.
• Related-party and circular trading detection – Repeated trades among connected entities, unusual price patterns and rapid recycling of funds are key red flags for diversion and round-tripping.

The scale of alleged loss to SBI in this case highlights how quickly a concentrated set of transactions can crystallise into systemic risk if early warning signals are missed or underplayed.

Shunyatax Global View – Trade Finance Fraud, Fund Diversion & AML

At Shunyatax Global, the AOPL investigation is seen as a textbook case of trade-based money laundering and fund diversion intersecting with mainstream banking and corporate finance.

For banks, NBFCs, trade houses and large import–export businesses, we typically focus on three core defence layers:

1. Enhanced due diligence on trade structures
   Independent checks on counterparties, commodity flows, pricing and shipping documents for complex merchanting and back-to-back trades, particularly where exposures are concentrated.
2. Analytics on LC and trade transaction patterns
   Using data to flag circular trading, repeated counterparties, unusual margins and abrupt shifts in turnover or geography, supported by robust credit risk and AML frameworks.
3. Forensic-ready documentation and escalation
   Ensuring that documentation, approvals and monitoring records are strong enough to support early forensic reviews, fraud classification, and cooperation with agencies such as ED and CBI when needed.

Institutions that invest in trade-finance governance and AML controls are better placed not only to prevent losses but also to demonstrate regulatory accountability when complex frauds come to light.

Shunyatax.in Bank Fraud & Trade Finance Advisory

If your organisation is active in trade finance, large corporate lending or cross-border transactions, the Advantage Overseas case is a timely signal to reassess your exposure to merchanting-trade fraud, fund diversion and trade-based money laundering.

Shunyatax Global works with banks, financial institutions and corporates to:

• Map exposure to complex trade-finance and LC-related fraud risks.
• Strengthen credit appraisal, documentation and post-disbursal monitoring frameworks.
• Design data-driven early-warning and anomaly-detection systems for trade flows.
• Support forensic reviews, recovery strategies and regulatory engagement in high-risk cases.

Visit Shunyatax Auditing Services to request a confidential review of your bank fraud and trade-finance risk posture, and to follow the Shunyatax News & Insights column for ongoing coverage of financial crime, cyber risk and regulatory developments.