ED attaches land worth ₹5.13 crore in money laundering probe linked to Ruchi Global Ltd Bank fraud case

Indore, Feb 20 (IANS) The Directorate of Enforcement (ED), Indore Sub-Zonal Office, has provisionally attached an immovable property — a parcel of land valued at ₹5.13 crore — in the name of Neeta Shahra, wife of Umesh Shahra, under the Prevention of Money Laundering Act (PMLA), 2002.

The attachment order was issued on February 17, 2026, the investigation agency said in a press statement.

The action forms part of an ongoing investigation into M/s Ruchi Global Ltd. (now renamed M/s Agrotrade Enterprises Ltd.), a company promoted by the late Kailash Chandra Shahra and Umesh Shahra.

The ED probe stems from a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI), AC-IV, Vyapam, Bhopal, against the company and its associates under Sections 13(2) and 13(1)(d) of the Prevention of Corruption Act, 1988, and Section 120-B read with Section 420 of the Indian Penal Code, 1860, it said.

According to the ED, the company allegedly defrauded a consortium of banks led by Bank of Baroda (erstwhile Dena Bank) to the tune of over ₹188.35 crore.

Investigations revealed that the accused dishonestly obtained credit facilities and Letters of Credit based on forged, fabricated, and manipulated documents, without any genuine underlying trade transactions.

The proceeds from these facilities were allegedly diverted and siphoned off through investments in group companies, loans, and advances to associate and group concerns.

The illegally obtained funds were then layered through a complex web of interlinked entities under common ownership and control, before being routed back to the borrower company.

These siphoned funds were systematically utilised to acquire various properties, including the attached land.

This is the latest development in the case, following ED searches conducted in December 2025 at the premises of Umesh Shahra and others in connection with related bank fraud allegations involving Ruchi Group entities.

The ED stated that further investigation is in progress to trace additional proceeds of crime and identify all parties involved.

The provisional attachment aims to prevent dissipation of assets derived from the alleged money laundering activities.

The case highlights ongoing scrutiny of corporate frauds involving diversion of bank funds in Madhya Pradesh and elsewhere, with agencies emphasising strict action against economic offenders.

–IANS

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