The Enforcement Directorate (ED) has intensified its investigation into an alleged ₹1,266 crore bank fraud involving M/s Advantage Overseas Private Limited (AOPL) and its promoter, Shrikant Bhasi. In its latest action, the agency has provisionally attached two investment-linked life insurance policies maintained with Zurich International Life Ltd., with a combined surrender value of approximately ₹3.66 crore. The move comes amid concerns that the policies could be liquidated and the proceeds transferred, potentially making it more difficult for authorities to recover suspected proceeds of crime.
The Alleged SBI Fraud Case
The case originates from a Central Bureau of Investigation (CBI) FIR alleging that AOPL, its directors, and certain unidentified public servants caused a wrongful loss of ₹1,266.63 crore to the State Bank of India through fraudulent merchanting trade transactions. Merchanting trade involves the purchase and sale of goods between two foreign countries without the goods entering India.
Investigators allege that the company secured banking facilities through sham transactions, circular trading arrangements, fabricated trade documents, and diversion of funds to various domestic and overseas entities. The ED claims that these activities enabled the accused to obtain and misuse significant banking resources.
Why the Insurance Policies Were Attached
According to the ED, the two Zurich International Life insurance policies were acquired during the period surrounding the alleged fraud and were funded through overseas accounts and entities connected to Shrikant Bhasi. During the course of the investigation, authorities discovered that Bhasi had initiated the process of surrendering the policies in April 2026 and sought to transfer the proceeds to his Indian bank account.
Fearing the dissipation of assets that may constitute proceeds of crime, the agency exercised its powers under the Prevention of Money Laundering Act (PMLA) and attached the policies before the surrender process could be completed. The combined surrender value of the policies is estimated at around ₹3.66 crore.
Earlier Attachments in the Same Investigation
This is not the first major asset attachment in the case. The ED had previously attached nine immovable properties located in Dubai, valued at approximately ₹51.70 crore, as well as domestic assets worth around ₹111 crore. Authorities believe these assets were acquired using funds generated through the alleged fraudulent activities and subsequently layered through multiple entities to conceal their origin.
Investigation Continues
The latest attachment highlights the ED’s continued efforts to trace and secure assets allegedly linked to large-scale financial crimes. Investigators are examining domestic and overseas financial transactions, investments, and properties connected to the accused. As the probe progresses, additional attachments and legal actions may follow if further assets linked to the alleged fraud are identified.
The case serves as another example of increasing scrutiny of offshore investments and financial products in money laundering investigations. Authorities are expected to continue tracking the flow of funds to determine the full extent of the alleged fraud and recover assets suspected to have been acquired through illegal means.
Summary
The Enforcement Directorate has attached two Zurich International Life insurance policies worth ₹3.66 crore linked to businessman Shrikant Bhasi in a ₹1,266 crore SBI fraud investigation. The agency alleges the policies were funded through connected overseas entities and were being prepared for surrender. The action follows earlier attachments of properties worth over ₹160 crore in India and Dubai as part of the ongoing money laundering probe.
