The Enforcement Directorate (ED) has provisionally attached an immovable property worth around Rs 150 crore located close to Buckingham Palace in London as part of its ongoing investigation into an alleged bank loan fraud and money laundering case involving S Kumars Nationwide Ltd. The action has been taken against the company’s former chairman and managing director, Nitin Shambhukumar Kasliwal, under the provisions of the Prevention of Money Laundering Act (PMLA).
In an official statement issued on December 31, the federal probe agency confirmed that the provisional attachment order was passed on Tuesday, marking a major development in a case that involves the alleged diversion of large-scale bank loans and the creation of an elaborate offshore structure to park illicit funds abroad.
According to the ED, the attached asset is a “high-value” property situated in one of London’s most exclusive areas, in close proximity to Buckingham Palace. While the property is formally held through overseas entities, the agency stated that it falls under the “beneficial ownership” of Nitin Kasliwal and his family members.
The money laundering case stems from allegations that Kasliwal, through S Kumars Nationwide Ltd, cheated a consortium of Indian banks by fraudulently obtaining loans and subsequently diverting those funds outside the country. The ED has alleged that the diversion was carried out under the guise of foreign investments, with the actual intent of acquiring immovable properties and other assets abroad.
Investigators claim that the loan funds, instead of being used for legitimate business purposes, were siphoned off and layered through multiple jurisdictions. These funds were allegedly used to purchase luxury properties overseas, including the London asset that has now been attached.
“The diverted money was used to acquire immovable assets abroad, which were deliberately concealed through a complex web of private trusts and companies incorporated in foreign jurisdictions,” the ED stated.
As part of the probe, the ED conducted search operations on December 23 at multiple locations linked to the accused. During these raids, officials seized documents, digital devices and other incriminating material. A detailed forensic and financial analysis of the seized evidence, according to the agency, revealed the existence of a sophisticated offshore structure designed to obscure ownership and the source of funds.
The ED said that Kasliwal had established a network of trusts and shell companies across several offshore tax havens, including the British Virgin Islands (BVI), Jersey and Switzerland. These jurisdictions are known for their secrecy laws and have frequently featured in global investigations related to tax evasion and money laundering.
One of the key entities identified during the investigation is the Catherine Trust, earlier known as the Surya Trust. The ED stated that Kasliwal and his family members were the primary beneficiaries of this trust.
According to the agency, the Catherine Trust exercised control over a company named Catherine Property Holding Limited (CPHL), which was incorporated in offshore jurisdictions including Jersey and the British Virgin Islands. This company, in turn, held ownership of the London property that has now been provisionally attached.
By routing ownership through multiple layers of trusts and companies, the accused allegedly attempted to distance himself from the asset and conceal the proceeds of crime, the ED said.
“This trust controlled a company based in Jersey and the British Virgin Islands named Catherine Property Holding Limited, which ultimately held the ownership of the immovable property in London that has been attached under PMLA,” the agency noted in its press release.
The ED clarified that attaching properties located outside India involves a multi-step legal process. Once a provisional attachment order is issued under Indian law, the agency approaches its counterpart authorities in the concerned foreign country through established mutual legal assistance mechanisms.
These foreign agencies are then requested to take possession of the attached properties or otherwise secure them in accordance with their domestic laws and international cooperation frameworks related to money laundering and financial crimes.
Such actions, officials say, are part of India’s broader effort to crack down on economic offenders who move illicit funds abroad and attempt to shield assets through complex cross-border structures.
S Kumars Nationwide Ltd, once a prominent name in India’s textile industry, has been under scrutiny for several years over allegations of financial irregularities and loan defaults. The company had availed substantial credit facilities from a consortium of banks, which later turned into non-performing assets (NPAs).
Following complaints from banks and subsequent investigations by agencies including the Central Bureau of Investigation (CBI), the ED initiated a parallel probe under the PMLA to trace the proceeds of crime and identify assets acquired through alleged money laundering.
The attachment of a high-profile property near Buckingham Palace is being seen as one of the most significant actions in the case so far, both because of the value of the asset and its prime location.
