New Delhi, Oct 3 (NationPress) The Enforcement Directorate (ED) has executed searches at three residential and commercial properties in Gurugram associated with the Sravanthi Group and its promoter concerning a substantial Rs 346 crore bank fraud, as confirmed by an official on Friday.

The ED's Gurugram zonal office initiated the searches on October 1, targeting three premises linked to Dandamudi Venkateswara Rao, the promoter of the Sravanthi Group, including M/s Sravanthi Infratech Pvt Ltd and its affiliated company M/s Sravanthi Energy Pvt Ltd (SEPL).

These actions were undertaken under the Prevention of Money Laundering Act (PMLA), 2002, in relation to M/s Hythro Power Corporation Ltd (HPCL) and others, as part of an investigation into a bank fraud case involving Rs 346 crore, according to the ED.

During the conducting of these searches, numerous incriminating documents were confiscated, the agency noted.

The ED is probing the Sravanthi Group and its promoter for alleged money laundering connected to a broader investigation into HPCL and its directors for allegedly misappropriating and misdirecting public funds, leading to considerable financial losses for banks.

According to the ED, the investigation focuses on allegations that funds were illicitly diverted from HPCL to its own related entities and those of the Sravanthi Group. This operation is purportedly part of an extensive bank fraud scheme aimed at laundering money.

The ED's case derives from a fraud complaint lodged by the banks, which transpired between 2009 and 2015, totaling Rs 346.08 crore.

In previous searches conducted in October 2024, the ED's Gurugram Zonal Office acquired incriminating documents associated with various financial and property transactions, including registration deeds, gift deeds, share purchase agreements, loan documents, and company ledgers.

At least two directors of HPCL are currently under investigation for misappropriating and misdirecting public funds, resulting in significant losses to banks.