₹5.13 Cr Property Seized Under PMLA: Directorate of Enforcement Cracks Whip in Ruchi Global Money-Laundering Case

(Judicial Quest News Network)

Indore, 20, February,2026- In a significant crackdown on large-scale financial fraud and money laundering, the Directorate of Enforcement (ED), Indore Sub-Zonal Office, has provisionally attached an immovable property valued at ₹5.13 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The attachment was ordered on 17 February 2026 in connection with the money laundering probe against Ruchi Global Ltd, now operating under the name Agrotrade Enterprises Ltd.

The attached asset comprises a parcel of land registered in the name of Mrs. Neeta Shahra, wife of Umesh Shahra, which the ED has identified as “proceeds of crime” generated through alleged financial misconduct and illicit diversion of bank funds.

Genesis of the Probe

The ED’s investigation was triggered by an FIR registered by the Central Bureau of Investigation (CBI), AC-IV, Vyapam, Bhopal, which accused the company and its promoters of serious financial अपराध under:

• Sections 13(2) and 13(1)(d) of the Prevention of Corruption Act, 1988
• Section 120-B (criminal conspiracy) read with Section 420 (cheating) of the Indian Penal Code, 1860

The FIR alleges that the company orchestrated a systematic banking fraud against a consortium of banks led by Bank of Baroda (erstwhile Dena Bank), causing a wrongful loss exceeding ₹188.35 crore to the public exchequer.

Modus Operandi: Financial Engineering of Fraud

According to the ED’s findings, the accused company dishonestly obtained credit facilities and Letters of Credit by submitting forged, fabricated and manipulated documents, often without any genuine underlying trade transactions.

Investigators have concluded that the facilities were availed purely on paper, creating a façade of legitimate business activity to access institutional finance.

The funds so obtained were:

• Illegally diverted
• Layered through multiple transactions
• Routed through a complex network of interlinked group and associate entities
• Reintroduced into the borrower company’s financial system

This intricate structure of fund movement — described by officials as a classic money-laundering architecture — involved common ownership, control, and management across entities, enabling the siphoning of public money under the guise of corporate transactions.

Proceeds of Crime and Asset Creation

The ED investigation further revealed that the siphoned funds were systematically utilized for acquisition of movable and immovable properties, including land and other high-value assets.

The provisionally attached ₹5.13 crore property is part of this asset trail, which authorities believe represents laundered proceeds of crime generated from the banking fraud.

Enforcement Action and Ongoing Probe

Earlier, in December 2025, the ED, Indore had conducted extensive search operations at multiple premises linked to Umesh Shahra and associated persons, leading to the seizure of financial documents, digital evidence, and transaction records crucial to mapping the laundering trail.

Officials have confirmed that further investigation is ongoing, with focus on:

• Identification of additional benami and proxy assets
• Tracing layered transactions across shell entities
• Establishing the full money trail
• Identifying beneficiaries and facilitators
• Potential prosecution under PMLA

Legal Significance

The case reflects a growing pattern of corporate financial crime involving structured fund diversion, layered laundering, and banking fraud, where regulatory oversight is allegedly subverted through forged documentation, complex corporate structures, and financial engineering.

With the provisional attachment now in place, the matter is expected to proceed before the PMLA Adjudicating Authority, where the ED will seek confirmation of the attachment and eventual confiscation of assets.

The investigation is being closely watched as a major test case in financial crime enforcement, banking fraud accountability, and corporate money laundering jurisprudence in India.