ED attaches ₹3.66 crore insurance policies in SBI fraud case against Shrikant Bhasi
Synopsis
The ED has frozen two foreign life insurance policies worth ₹3.66 crore held by Shrikant Bhasi — acting just weeks after he sought to cash them out and repatriate the funds to India. Combined with earlier Dubai and domestic property seizures, total attachments in the ₹1,266.63 crore SBI fraud case now stretch across multiple jurisdictions.
Key Takeaways
The ED Bhopal Zonal Office provisionally attached two Zurich International Life Ltd insurance policies worth ₹3.66 crore (USD 387,814.42) belonging to Shrikant Bhasi .
The attachment is linked to an alleged ₹1,266.63 crore fraud against State Bank of India (SBI) through sham merchanting trade transactions.
Bhasi had sought to surrender the policies and remit proceeds to India in April 2026 ; the ED intervened to prevent dissipation of funds.
Earlier attachments include nine properties in Dubai valued at ~ ₹51.70 crore and domestic properties worth ~ ₹111 crore .
The case was initiated based on a CBI-BSFB FIR ; ED investigation under PMLA, 2002 is ongoing.
The Directorate of Enforcement (ED), Bhopal Zonal Office, has provisionally attached two foreign investment-linked life insurance policies worth approximately ₹3.66 crore belonging to Shrikant Bhasi, promoter of M/s Advantage Overseas Private Limited (AOPL), in connection with a money laundering probe linked to an alleged ₹1,266.63 crore fraud against the State Bank of India (SBI). The action was taken under Section 5(1) of the Prevention of Money Laundering Act (PMLA), 2002.
The Attached Policies
The two policies are maintained with Zurich International Life Ltd and carry an aggregate surrender value of USD 387,814.42 (approximately ₹3.66 crore). According to the ED, both policies were acquired and maintained in the name of Shrikant Bhasi during the period surrounding the commission of the alleged scheduled offence, and were funded through overseas accounts and entities linked to him.
In April 2026, Bhasi had reportedly sought the surrender of both policies and requested that the proceeds be remitted to his Indian bank account. To prevent possible dissipation of what the agency describes as proceeds of crime, the ED moved to attach the policies before any funds could be transferred.
The Alleged SBI Fraud
The ED initiated its money laundering investigation based on an FIR registered by the Central Bureau of Investigation's (CBI) Banking Security and Fraud Cell (BSFB), New Delhi, against AOPL, its directors, and unknown public servants. The accused are alleged to have caused a wrongful loss of ₹1,266.63 crore to SBI through fraudulent merchanting trade transactions.
Investigators found that AOPL and its promoters allegedly availed banking facilities through sham merchanting transactions, circular trading, fabrication of trade documents, and diversion of bank funds to domestic and overseas entities. The proceeds of crime were reportedly layered through multiple companies controlled by Bhasi and subsequently invested in movable and immovable assets in India and abroad.
Prior Attachments in the Case
This latest attachment adds to a growing list of asset seizures in the case. Earlier, the ED had provisionally attached nine immovable properties in Dubai, UAE, valued at approximately ₹51.70 crore, along with domestic properties worth around ₹111 crore. The cumulative value of attached assets now runs well into the hundreds of crores.
What Happens Next
The ED stated that investigation into the matter is ongoing and that the attachment of the insurance policies is part of its broader effort to trace and seize all proceeds of crime generated by the alleged fraud. Further disclosures and attachments cannot be ruled out as the probe advances.
Point of View
Suggesting the agency's surveillance of overseas assets is reactive rather than proactive. With total attachments now spanning Dubai real estate, domestic properties, and foreign insurance instruments, the case illustrates how alleged bank fraud proceeds are layered across jurisdictions to frustrate recovery. Yet the core ₹1,266.63 crore loss to SBI — a public-sector bank — remains largely unrecovered, and the pace of PMLA proceedings versus the scale of alleged diversion raises questions about enforcement bandwidth. The CBI's parallel criminal case will be the real test of whether accountability extends beyond asset freezes to conviction.
NationPress
25 Jun 2026
Frequently Asked Questions
What has the ED attached in the Shrikant Bhasi SBI fraud case?
The ED has provisionally attached two foreign life insurance policies maintained with Zurich International Life Ltd, with a combined surrender value of USD 387,814.42 (approximately ₹3.66 crore), in the name of Shrikant Bhasi. The attachment was made under Section 5(1) of the PMLA, 2002.
What is the alleged SBI fraud involving AOPL?
M/s Advantage Overseas Private Limited (AOPL) and its promoters are alleged to have caused a wrongful loss of ₹1,266.63 crore to the State Bank of India through fraudulent merchanting trade transactions, circular trading, fabrication of trade documents, and diversion of bank funds to domestic and overseas entities.
Why did the ED attach the insurance policies now?
In April 2026, Shrikant Bhasi reportedly sought to surrender both policies and have the proceeds remitted to his Indian bank account. The ED attached the policies to prevent possible dissipation of what it describes as proceeds of crime before any funds could be transferred.
What other assets have been attached in this case?
Earlier in the investigation, the ED had provisionally attached nine immovable properties in Dubai, UAE, valued at approximately ₹51.70 crore, and domestic properties worth around ₹111 crore. The latest insurance policy attachment adds ₹3.66 crore to the total.
Who registered the original case against AOPL?
The original FIR was registered by the CBI's Banking Security and Fraud Cell (BSFB), New Delhi, against AOPL, its directors, and unknown public servants. The ED subsequently launched its money laundering investigation under the PMLA based on that FIR.
