Indian Authorities Seize £700k Asset Near Heathrow in Cross-Border Bank Fraud Probe

Federal investigators in India have moved to seize a property worth ₹7.5 crore located near London’s Heathrow Airport as part of a widening investigation into international bank loan fraud. The Enforcement Directorate (ED) issued a provisional attachment order on Tuesday, freezing the immovable asset under the strict provisions of the Prevention of Money Laundering Act (PMLA). The action targets assets allegedly derived from a sophisticated financial operation involving dummy companies and the siphoning of funds overseas.

Background and Context

The investigation stems from two First Information Reports (FIRs) originally registered by the Central Bureau of Investigation (CBI). The first case involves Punjab National Bank, where the accused allegedly cheated the bank of ₹57 crore. The second case involves fraud against the State Bank of India (SBI) amounting to ₹249.97 crore. These cases have been consolidated under the ED's money laundering probe, which focuses on the trail of funds leaving the Indian banking system and re-emerging as assets in foreign jurisdictions.

Key Figures and Entities

Central to the investigation are two corporate entities: Neo Corp International Ltd and Poly Logic International Pvt Ltd. According to official filings, Neo Corp’s managing director, Sunil Kumar Trivedi, and Poly Logic’s director, Utkarsh Trivedi, are among the primary figures implicated. Authorities allege that these individuals oversaw a "cartel" of companies that engaged in circular trading to obscure the origin of funds.

Legal and Financial Mechanisms

Investigators allege that the accused utilized a complex network of shell companies to route, rotate, and layer illicit proceeds. These "dummy" firms were allegedly floated in the names of employees and close associates to serve as conduits for the movement of money. According to the ED, this structure effectively camouflaged the end-use of the funds, allowing the proceeds of crime to be siphoned out of India under the guise of legitimate foreign investments. The attachment of the London property represents a significant step in recovering assets that were allegedly placed beyond the reach of domestic regulators.

International Implications and Policy Response

The seizure of high-value real estate near a major international hub highlights the persistent challenges in tracking cross-border financial crime. The case illustrates how illicit funds are frequently converted into immovable assets in stable markets to evade detection. Successful attachment orders in foreign jurisdictions depend heavily on international cooperation and the ability of agencies to prove that assets are directly linked to specific proceeds of crime, a legal hurdle that this case seeks to overcome.

Sources

This report is based on official statements from the Enforcement Directorate and public records regarding the Central Bureau of Investigation cases. Additional context regarding the implicated banks was drawn from PNB and SBI corporate records.