ED Searches 11 Premises in Mumbai and Delhi in ₹255-Crore Alfara’a Infraprojects Loan Case
The Directorate of Enforcement (ED), Mumbai Zonal Office-I, conducted search operations at 11 premises across Mumbai and Delhi on September 10, 2026, in connection with an alleged bank loan fraud 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, as part of an ongoing investigation initiated following an FIR registered by the Central Bureau of Investigation’s (CBI) Economic Offences Branch in Chennai. The case stems from 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 facilities were subsequently increased to ₹360.50 crore in 2015. The company’s account was declared a non-performing asset (NPA) on June 18, 2018, with outstanding dues of ₹255.74 crore.
The agency’s preliminary findings indicate that Letters of Credit (LCs) worth approximately ₹75.02 crore devolved, while Bank Guarantees (BGs) amounting to around ₹164.59 crore were invoked, allegedly generating proceeds of crime. A substantial portion of the funds was reportedly routed through intermediary and beneficiary entities before being transferred to AIPL and its group companies through layered transactions intended to conceal the money’s origin.
The ED further alleged that foreign bank guarantees were opened in the name of glazed-tile exports that never took place. The associated funds were reportedly remitted to foreign entities based in Singapore and Hong Kong. Several LCs and BGs subsequently devolved or were invoked due to non-payment, allegedly resulting in financial losses to the bank and diversion of funds.
During the searches, the ED recovered and seized ₹18 lakh in Indian currency, US dollars worth $9,567 and 860 kwacha in foreign currency.
The agency also froze fixed deposits valued at approximately ₹1.02 crore in Indian currency, ₹1.75 crore in Japanese yen and $103,145 in US dollars.
Investigators seized documents, digital devices and records relating to bank transactions, letters of credit, bank guarantees and immovable properties linked to the accused and other suspected entities.
The ED said the seized material is expected to help establish the movement of funds and trace the alleged proceeds of crime routed through banking channels. The investigation is ongoing.
News Source : Information for this article was gathered from a variety of reliable news outlets.
