ED Raids 11 Premises in ₹360.50 Crore Alfara’a Infraprojects Bank Fraud Case
The Enforcement Directorate (ED), Mumbai Zonal Office-I, conducted searches at 11 premises in Mumbai and Delhi on September 10, 2026, as part of an ongoing money-laundering investigation involving Alfara’a Infraprojects Pvt. Ltd. (AIPL), its directors and close associates.
The searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002, following an FIR registered by the Central Bureau of Investigation’s (CBI) Economic Offences Branch, Chennai, based on a complaint filed by Bank of Baroda.
According to the ED’s investigation, AIPL, a civil construction company, obtained credit facilities worth ₹103 crore from Bank of Baroda in 2012. The credit limit was subsequently increased to ₹360.50 crore in 2015. The account was declared a Non-Performing Asset (NPA) on June 18, 2018, with an outstanding amount of ₹255.74 crore.
The ED’s preliminary findings indicate that Letters of Credit (LCs) worth approximately ₹75.02 crore devolved, while Bank Guarantees (BGs) worth around ₹164.59 crore were invoked, allegedly generating proceeds of crime. A substantial portion of the funds was reportedly routed through multiple beneficiary and intermediary entities before being transferred to AIPL and its group companies through layered transactions, allegedly to conceal the money’s actual source.
The investigation also revealed allegations that foreign bank guarantees were opened in the name of exporting glazed tiles, even though the exports were allegedly never carried out. The related funds were reportedly remitted to foreign entities based in Singapore and Hong Kong.
Several LCs and BGs subsequently devolved or were invoked after AIPL allegedly failed to make the required payments, resulting in financial losses to the bank. The ED is investigating the suspected diversion and siphoning of funds through these transactions.
During the searches, the agency recovered and seized Indian currency worth ₹18 lakh, along with foreign currency comprising US dollars 9,567 and 860 kwacha.
The ED also froze fixed deposits worth approximately ₹1.02 crore, Japanese yen amounting to approximately 1.75 crore, and US dollars worth 1,03,145.
In addition, investigators seized documents, digital devices and records relating to bank transactions, letters of credit, bank guarantees and immovable properties allegedly linked to the accused individuals and associated entities.
According to the agency, these materials are being examined to establish the movement of funds and trace the proceeds of crime allegedly generated and routed through banking channels.
News Source : Information for this article was gathered from a variety of reliable news outlets.
