ED Seizes Rs 43.52 Crore in Ushdev International Limited Bank Fraud Case
The Enforcement Directorate (ED) has seized properties worth Rs 43.52 crore in connection with a Rs 1438.45 crore bank fraud involving Ushdev International Limited (UIL). The ED’s Mumbai office took action under the Prevention of Money Laundering Act, 2002.
The investigation revealed that loans granted to UIL by multiple banks were diverted to various entities. These funds were transferred to India-based companies where UIL’s overseas subsidiaries are major shareholders. These subsidiaries were controlled by UIL’s directors and major shareholders.
Assets of UIL’s directors and shareholders worth Rs 43.52 crore were identified and provisionally attached. Earlier, in February 2023, searches were conducted at the premises of UIL and related entities.
Doubts Revealed
ED -: ED stands for Enforcement Directorate. It is a government agency in India that investigates financial crimes like money laundering and fraud.
Rs 43.52 Crore -: Rs 43.52 Crore means 43.52 crore rupees. A crore is a unit in the Indian numbering system equal to ten million (10,000,000). So, 43.52 crore is 435,200,000 rupees.
Ushdev International Limited -: Ushdev International Limited (UIL) is a company in India. In this case, it is involved in a bank fraud where it took loans and did not use them properly.
Bank Fraud -: Bank fraud means cheating a bank to get money illegally. In this case, it involves taking loans and not using them for the intended purpose.
Prevention of Money Laundering Act, 2002 -: The Prevention of Money Laundering Act, 2002 is a law in India to stop money laundering. Money laundering is hiding where money really comes from, usually because it was earned illegally.
Mumbai -: Mumbai is a big city in India. It is the capital of the state of Maharashtra and is known as the financial capital of India.
Loans -: Loans are amounts of money borrowed from banks or other financial institutions that need to be paid back with interest.
Entities -: Entities are organizations or companies. In this case, the money was sent to different companies or organizations instead of being used properly.
Assets -: Assets are valuable things that a person or company owns, like money, property, or stocks. In this case, the ED seized the assets of UIL’s directors and shareholders.
Directors and Shareholders -: Directors are people who manage a company, and shareholders are people who own shares (parts) of the company. In this case, their assets were seized because of the fraud.
Provisionally Attached -: Provisionally attached means temporarily taking control of assets. The ED did this to the assets of UIL’s directors and shareholders while investigating the fraud.
Searches -: Searches mean looking for evidence. In this case, the ED conducted searches in February 2023 to find proof of the bank fraud.
