ED Uncovers ₹284-Crore Laundering Network Linked to Sravanthi Group, 3 Arrested

The Enforcement Directorate on Saturday said its money laundering investigation against Dandamudi Venkateswara Rao and his associates uncovered an alleged fraud and laundering network involving nearly ₹284 crore , leading to the arrest of three persons, including Rao. A special court has remanded all three to ED custody till May 12.

According to the agency, the probe began from an FIR registered in Gurugram against DJW Electric Power Projects Private Ltd, a firm controlled by Rao. Investigators alleged the company fraudulently secured loans worth around ₹58 crore from multiple entities and diverted repayments through manipulated RTGS mandate forms linked to Kolkata-based shell companies instead of genuine lenders.

The investigation later expanded to Sravanthi Energy Private Limited (SEPL), another company linked to Rao and part of the Sravanthi Group. The ED alleged SEPL diverted ₹89.36 crore through fake consultancy payments to a shell company registered in the name of Rao’s father-in-law. The agency also accused the firm of generating bogus purchase invoices worth over ₹139 crore through more than 100 shell entities without any actual supply of goods or services.

The ED claimed the proceeds of crime in the SEPL case alone amounted to around ₹228 crore . It further alleged that Rao defaulted on large bank loans, causing SEPL to turn into a Non-Performing Asset and forcing banks into a One-Time Settlement that allegedly caused losses exceeding ₹1,500 crore .

Searches conducted by the ED led to the seizure of jewellery worth about ₹5 crore and several luxury vehicles. Founded in 2009 and headquartered in Gurugram, Sravanthi Group describes itself as a provider of engineering solutions for conventional and renewable energy projects across India.