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ED claims ₹284 crore money laundering in Sravanthi Group probe; three arrested
The Enforcement Directorate announced a money laundering probe into Sravanthi Group promoter Dandamudi Venkateswara Rao and associates, alleging about ₹284 crore laundered. Three individuals were arrested, including Rao, and remanded to ED custody until May 12. ED searches seized assets and a provisional attachment was issued as the investigation unfolds, with Rao alleged to be evading detention and a warrant issued to secure his presence.
Why It Matters
The case highlights alleged large-scale financial fraud involving banks and investors, with potential losses to the banking system and questions about corporate governance in the Sravanthi Group. It also shows ongoing cross-agency enforcement actions in India’s financial-crime landscape.
Timeline
7 Events
May 9, 2026: Sravanthi Energy Private Limited (SEPL) scheme details and larger losses cited
May 9, 2026
The ED detailed SEPL’s scheme: about ₹75 lakh per month paid as consultancy to a shell entity with no office, resulting in ₹89.36 crore diverted; over ₹139 crore in bogus purchases were booked through more than 100 shell entities and paid back in cash to Rao and family. The total proceeds of crime in the SEPL case were about ₹228 crore. The ED also noted Rao’s prior defaults leading to SEPL becoming a non-performing asset and triggering a compulsory One-Time Settlement with alleged losses to the banking system exceeding ₹1,500 crore; PSU banks hold minority shares in the company.
May 9, 2026: FIR origin and DJW Electric Power Projects alleged loan fraud (₹58 crore)
May 9, 2026
The ED noted that the probe originated from an FIR registered in Gurugram, alleging that DJW Electric Power Projects Private Ltd, controlled by Rao, fraudulently availed loans. The total loan amount involved was about ₹58 crore, with RTGS misused to route repayments to Kolkata-based shell entities.
May 9, 2026: Rao reportedly hiding at brother’s Hyderabad residence
May 9, 2026
The ED claimed Rao was hiding at the Hyderabad residence of his brother, Dandamudi Avanindra Kumar, to evade proceedings.
May 9, 2026: Court issues open-ended non-bailable warrant for Rao
May 9, 2026
Due to Rao’s alleged non-cooperation and absconding, a court issued an open-ended non-bailable warrant to ensure his presence before the investigating agency.
May 9, 2026: Provisional attachment under PMLA issued
May 9, 2026
The ED issued a provisional attachment order under the Prevention of Money Laundering Act against Sravanthi Energy Private Ltd and others as part of the Money Laundering Act investigation.
May 9, 2026: ED conducts search operations and seizes assets
May 9, 2026
During search operations, the ED seized gold and diamond jewellery valued at approximately ₹5 crore and multiple luxury vehicles belonging to D V Rao and his family members.
May 9, 2026: ED press release confirms arrests and custody remand in the Sravanthi Group probe
May 9, 2026
The ED announced in a press release that its money laundering probe into Dandamudi Venkateswara Rao, promoter of Sravanthi Group, and associates uncovered large-scale laundering around ₹284 crore; three persons, including Rao, have been arrested and remanded to ED custody until May 12.