ED attaches Rs 7.5 cr London property in Neo Corp bank fraud case

The Enforcement Directorate attached a London property worth Rs 7.5 crore in a bank fraud case involving Neo Corp International. The firm and its directors are accused of defrauding PNB and SBI of over Rs 307 crore under the PMLA.

ED Attaches London Property in Bank Fraud Case

The Enforcement Directorate (ED) on Wednesday said it has attached an immovable property, having a market value of around Rs 7.5 crore, situated near Heathrow Airport, London, in the United Kingdom.

As per the agency, the provisional attachment of property was done in a major bank fraud case involving Neo Corp International Limited and its director and promoters, who are currently being investigated under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Investigation into Rs 307 Crore Fraud

ED initiated an investigation under the PMLA, 2002, based on two cases registered by the Central Bureau of Investigation (CBI). The first case involves Poly Logic International Private Limited, its Director, Utkarsh Trivedi and others, accused of defrauding Punjab National Bank of Rs 57.47 crore. The second case pertains to Neo Corp International Limited, its Managing Director, Sunil Kumar Trivedi and others, alleged to have caused a wrongful loss of Rs. 249.97 crore to State Bank of India (SBI). Together, the alleged fraud amounts to Rs 307.44 crore.

Modus Operandi Uncovered

ED said its investigation has revealed extensive fund transfers among a cartel of companies, designed to create a complex web of banking transactions aimed at layering illicit proceeds and siphoning off funds by accused persons.

"Neo Corp International Limited and Poly Logic International Private Limited, through their directors, engaged in financial dealings with entities suspected to be dummy firms floated in the names of employees and close associates. These shell companies acted as conduits to route, rotate, and layer funds between related entities, effectively camouflaging the movement and end use of the Proceeds of Crime," said the agency.

Investigation further revealed that the Proceeds of Crime were siphoned off to foreign jurisdictions under the guise of investment.

Previous Searches and Seizures

Earlier, on February 26 this year, the agency carried out searches at the residential premises of the accused, leading to the seizure of incriminating digital devices and records.

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