ED gets custody of 3 accused in ₹284 crore Sravanthi Group bank fraud
Synopsis
The ED has secured custodial remand of three accused — including Sravanthi Group promoter D.V. Rao — in a ₹284 crore money laundering case involving misused RTGS mandates, over 100 shell entities, and bogus invoices worth ₹139 crore. Properties spanning three states and luxury assets worth ₹24 crore have already been attached.
Key Takeaways
A Special PMLA court remanded three accused, including Sravanthi Group promoter D.V.
Rao , to ED custody till 12 May .
The ED's probe has uncovered alleged laundering of approximately ₹284 crore involving Rao and his associates.
Assets worth ₹24 crore — including 292 acres of land across Andhra Pradesh , Telangana , and Karnataka — have been attached.
SEPL allegedly paid ₹75 lakh/month as sham consultancy fees to a shell firm, diverting ₹89.36 crore illicitly.
Bogus purchases of over ₹139 crore were booked through fake invoices from more than 100 shell entities , with cash returned to Rao's family.
The fraud originated from FIR No.
0360/2025 at Sector-40 Police Station, Gurugram , involving loan fraud of ₹58 crore .
A Special Prevention of Money Laundering Act (PMLA) court in New Delhi on Saturday, 9 May remanded three accused to Enforcement Directorate (ED) custody until 12 May in connection with a ₹284 crore money laundering and bank loan fraud linked to Sravanthi Group promoter D.V. Rao and his associates. The court accepted the ED's plea for custodial interrogation, observing that the gravity of the allegations and the accused's alleged role in money laundering made such questioning necessary.
Who Was Arrested
Two directors — D.V. Rao and D. Shanthi Kiran — along with Rao's brother, D. Avanindra Kumar, were arrested following searches at companies associated with the Sravanthi Group. The ED stated that its money laundering probe has uncovered large-scale laundering of approximately ₹284 crore involving Rao and his associates. During search operations, investigators seized gold and diamond jewellery valued at approximately ₹5 crore, as well as multiple luxury vehicles belonging to Rao and his family members.
Assets Attached Across Three States
The ED subsequently issued a Provisional Attachment Order under the PMLA, 2002, against Sravanthi Energy Private Limited (SEPL) and associated entities. On 3 March 2026, five residential premises were attached as part of a seizure of immovable and movable properties worth ₹24 crore. The attached assets include house properties measuring 25,060 sq. ft., and industrial and agricultural land of approximately 292 acres and 37 gunthas spread across Andhra Pradesh, Telangana, and Karnataka, owned by Rao and his family members.
How the Fraud Was Allegedly Executed
The investigation originated from FIR No. 0360/2025 registered at Police Station Sector-40, Gurugram, which alleged that M/s DJW Electric Power Projects Private Ltd., controlled by Rao, had fraudulently availed loans from various entities. The ED's investigation reveals the total loan amount involved in this fraud was ₹58 crore.
In a sophisticated scheme, DJW's accounting records showed loan repayments to original lenders, but the banking RTGS system was allegedly misused — mandates fraudulently carried the names of actual lenders while providing bank details of Kolkata-based shell entities. Funds were consequently siphoned to shell companies including Nexus International, Bhavtarini Sales Pvt. Ltd., and Gabel Trading Co., rather than reaching legitimate lenders.
The SEPL Angle: Shell Firms and Fake Invoices
A parallel money laundering investigation under FIR No. 336/2025 involves SEPL, also controlled by Rao. According to the ED, SEPL was allegedly paying approximately ₹75 lakh per month as fictitious
Point of View
Shell-entity networks spanning multiple states, and fictitious consultancy arrangements. What stands out is the alleged misuse of India's real-time payment infrastructure to reroute repayments away from legitimate lenders, a method that exploits procedural trust rather than technical vulnerabilities. The involvement of over 100 shell entities and three-state property holdings suggests this was not opportunistic but systematically planned. The ED's ability to secure custodial remand signals prosecutorial confidence, but the real test will be whether the money trail leads to recoverable assets for defrauded lenders.
NationPress
10 May 2026
Frequently Asked Questions
What is the Sravanthi Group ₹284 crore fraud case?
It is a money laundering and bank loan fraud case in which the ED alleges that Sravanthi Group promoter D.V. Rao and associates laundered approximately ₹284 crore through shell companies, fake invoices, and misuse of the RTGS banking system. Three accused have been remanded to ED custody until 12 May by a Special PMLA court.
Who are the accused remanded to ED custody?
The three accused are Sravanthi Group promoter D.V. Rao, co-director D. Shanthi Kiran, and Rao's brother D. Avanindra Kumar. They were arrested following searches at companies associated with the Sravanthi Group.
What assets has the ED attached in this case?
The ED has attached properties worth ₹24 crore, including house properties of 25,060 sq. ft. and approximately 292 acres of industrial and agricultural land across Andhra Pradesh, Telangana, and Karnataka. Gold, diamond jewellery worth ₹5 crore and luxury vehicles were also seized.
How was the RTGS system allegedly misused in this fraud?
According to the ED, loan repayment mandates in the RTGS system carried the names of legitimate lenders but contained bank account details of Kolkata-based shell entities. This caused repayment funds to be diverted to shell companies instead of reaching the actual lenders.
What was the role of Sravanthi Energy Private Limited (SEPL) in the case?
SEPL, also controlled by D.V. Rao, allegedly paid ₹75 lakh per month as fictitious consultancy fees to a shell firm registered in the name of Rao's father-in-law, diverting ₹89.36 crore illicitly. It also booked bogus purchases of over ₹139 crore through fake invoices from more than 100 shell entities.
