11 Persons Linked to Alfaraa Infraprojects Pvt Ltd Under Scanner; ₹18 Lakh Cash, Foreign Currency and Digital Devices Seized
MUMBAI, SEPTEMBER 15: The Directorate of Enforcement (ED), Mumbai Zonal Office-I, has conducted search operations at multiple locations in Mumbai and Delhi in connection with an ongoing money laundering investigation involving Alfaraa Infraprojects Pvt Ltd (AIPL) and its directors and close associates.
The searches were carried out on September 10, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, covering the premises of 11 persons allegedly linked with AIPL.
The ED investigation originated from an FIR registered by the Central Bureau of Investigation (CBI), Economic Offences Branch, Chennai, against M/s Alfaraa Infraprojects Pvt Ltd and others on the basis of a complaint filed by the Bank of Baroda.
According to the ED investigation, AIPL, a civil construction company, had availed credit facilities from Bank of Baroda amounting to approximately ₹103 crore in 2012. The company reportedly became irregular in servicing the facilities, which were subsequently classified as a Non-Performing Asset (NPA) on June 18, 2018, with the outstanding liability rising to approximately ₹255.74 crore.
₹75.02 CRORE LETTERS OF CREDIT UNDER SCANNER
The investigation further revealed that Letters of Credit (LCs) amounting to approximately ₹75.02 crore and Bank Guarantees (BGs) of around ₹164.59 crore were allegedly invoked, following which proceeds of crime were generated.
The ED stated that a substantial portion of the funds was allegedly routed through various beneficiary/intermediary entities and subsequently diverted to AIPL and its group entities through layered transactions to camouflage the actual origin and movement of the funds.
FOREIGN BANK GUARANTEES, ALLEGED DIVERSION OF FUNDS PROBED
The agency also found that certain Foreign Bank Guarantees (FBGs) had allegedly been opened in the guise of exports of glazed tiles that were reportedly never actually made.
According to the investigation, the money was allegedly remitted to foreign entities based in Singapore and Hong Kong. Several LCs and BGs were subsequently allegedly devolved/invoked due to non-payment by AIPL, resulting in losses to the bank and siphoning of the diverted funds.
The ED said the searches were aimed at tracing the financial linkages and money trail involving the accused persons, their close associates, family members and other entities suspected to be connected with the alleged proceeds of crime.
CASH, FOREIGN CURRENCY AND DIGITAL DEVICES SEIZED
During the search operations, the ED recovered and seized cash amounting to ₹18 lakh.
Foreign currency and other valuables were also recovered, including Indian currency, US dollars, UAE dirhams, Singapore dollars, Japanese yen and Kuwaiti dinars. The agency stated that foreign currencies equivalent to approximately ₹1.02 crore, along with JPY 1.75 crore (approximately) and USD 1,03,145, were frozen.
The searches also resulted in the seizure of a large quantity of incriminating documents, digital devices and records relating to bank transactions, Letters of Credit, Bank Guarantees and immovable properties allegedly linked with the accused persons and other suspect entities.
The ED stated that the seized material is expected to assist investigators in further establishing the trail of proceeds of crime and the alleged layering and diversion of funds through the banking channel.
FURTHER INVESTIGATION UNDERWAY
The Enforcement Directorate said the investigation remains under progress, with further examination of the seized documents, electronic evidence, financial transactions and properties expected to determine the complete money trail and the role of various persons and entities allegedly connected with the case.(KNC)
