The Enforcement Directorate (ED) seized ₹18 lakh in Indian currency along with foreign currency worth USD 9,567 and 860 Zambian Kwacha during raids on 11 premises in Mumbai and Delhi linked to Alfara'a Infraprojects Pvt Ltd (AIPL), its directors, and close associates. The searches, conducted on 10 September 2026, are part of a money laundering probe tied to an alleged bank fraud exceeding ₹255 crore, according to an official statement.

What Was Seized and Frozen

Beyond the cash seizure, investigators also froze fixed deposits valued at approximately ₹1.02 crore, Japanese yen 1.75 crore, and USD 1,03,145. The searches further yielded several incriminating documents, digital devices, and records relating to banking transactions, Letters of Credit (LCs), Bank Guarantees (BGs), and immovable properties linked to the accused and associated entities.

According to the ED, the material gathered is expected to help establish the trail of proceeds of crime allegedly generated and layered through banking channels. The agency stated that further investigation is underway.

The Alleged Fraud: How It Unfolded

The probe originates from a First Information Report registered by the Central Bureau of Investigation's (CBI) Economic Offences Branch in Chennai, filed on a complaint by Bank of Baroda. According to the ED, AIPL — a civil construction company — availed credit facilities worth ₹103 crore from Bank of Baroda in 2012. These were subsequently enhanced to ₹360.50 crore in 2015, before the loan account was declared a non-performing asset (NPA) on 18 June 2018, with outstanding dues of ₹255.74 crore.

The agency's investigation has prima facie revealed that LCs worth approximately ₹75.02 crore devolved, while BGs amounting to around ₹164.59 crore were invoked, allegedly resulting in the generation of proceeds of crime. Several of these instruments later devolved or were invoked due to non-payment by AIPL, causing wrongful losses to the lending bank.

Layering and Cross-Border Transactions

A substantial portion of the funds was allegedly routed through multiple intermediary and beneficiary entities before being diverted to AIPL and its group companies through layered transactions aimed at concealing their origin. Notably, the ED alleged that foreign bank guarantees were opened under the guise of exports of glazed tiles — transactions that were reportedly never executed — following which funds were remitted to entities based in Singapore and Hong Kong.

This cross-border dimension adds complexity to the investigation, as authorities will need to coordinate with overseas financial intelligence units to trace the full money trail. This is consistent with a broader pattern seen in recent ED cases involving NPA-linked frauds, where domestic bank defaults are layered through offshore structures.

Scope of the Raids

The searches were carried out by the ED's Mumbai Zonal Office-I under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Given the magnitude of the alleged fraud and the financial trail uncovered, the ED covered premises linked to the accused, their family members, close associates, and entities with financial connections to them. The agency has not yet disclosed if any arrests have been made in connection with the current round of searches.