In a significant move against offshore assets, the Enforcement Directorate (ED) has attached a property worth approximately Rs 150 crore (approximately $19 million USD) located near Buckingham Palace in London. The attachment, made on Tuesday under the Prevention of Money Laundering Act (PMLA), is linked to Nitin Shambhukumar Kasliwal, the former chairman and managing director of S Kumars Nationwide Limited, in connection with an alleged bank fraud case involving Rs 1,400 crore.

The ED's investigation revealed that Kasliwal allegedly defrauded a consortium of Indian banks to the tune of Rs 1,400 crore. According to the agency, Kasliwal diverted these funds outside India under the guise of foreign investments and subsequently acquired immovable assets abroad, concealing them through a complex web of private trusts and companies in foreign jurisdictions.

The attached property is held under the beneficial ownership of Nitin Shambhukumar Kasliwal and his family members. The ED identified a trust named Catherine Trust (formerly Surya Trust), where Kasliwal and his family members are the primary beneficiaries. This trust controls a company based in Jersey and the British Virgin Islands called Catherine Property Holding Limited (CPHL), which, in turn, owns the property in London.

The ED's investigation involved searches conducted on December 23, which led to the seizure of various incriminating records and digital devices. A detailed analysis of the seized materials revealed that Kasliwal had established a complex network of trusts and companies in multiple offshore tax havens, including the British Virgin Islands, Jersey, and Switzerland.

The ED alleges that Kasliwal, through S Kumars Nationwide Limited, cheated the consortium of banks and diverted the funds outside India in the guise of foreign investments. These funds were then used to acquire immovable assets abroad, which were concealed through a complex structure of private trusts and companies in foreign jurisdictions.

After attaching assets located abroad, the ED typically approaches its counterpart agencies in that country to take possession of such properties under the criminal provisions of the anti-money laundering law. This attachment marks a significant step in tracing and blocking assets held overseas by economic offenders. This case highlights the vulnerabilities in cross-border financial flows and the use of tax havens to launder proceeds from bank frauds.