Alfara’a Infraprojects Bank Fraud: ED Raids 11 Premises In Mumbai And Delhi, Freezes Crores In Foreign Assets, Seizes Cash In ₹360-Crore PMLA Probe

Mumbai, September 15, 2026: The Enforcement Directorate (ED) has conducted coordinated searches at 11 residential and commercial premises in Mumbai and Delhi linked to civil construction company Alfara’a Infraprojects Pvt Ltd (AIPL), its directors, and close associates as part of an ongoing money-laundering investigation into an alleged bank fraud involving credit facilities of over Rs 360 crore, the agency said.

Cash And Assets Seized

The searches, conducted by the ED’s Mumbai Zonal Office-I on September 10 under the Prevention of Money Laundering Act (PMLA), resulted in the seizure of Rs 18 lakh in Indian currency, USD 9,567 and 860 Kwacha. The agency also froze fixed deposits worth approximately Rs 1.02 crore, JPY 1.75 crore and USD 1,03,145.

Bank Fraud Under Investigation

The money-laundering investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation’s (CBI) Economic Offences Branch (EOB) in Chennai against AIPL and others, following a complaint filed by Bank of Baroda.

According to the ED, AIPL had availed credit facilities of Rs 103 crore from Bank of Baroda in 2012. The facilities were subsequently enhanced to Rs 360.50 crore in 2015. The account was declared a non-performing asset (NPA) on June 18, 2018, with an outstanding amount of Rs 255.74 crore.

The ED said its investigation had prima facie found that Letters of Credit (LCs) worth around Rs 75.02 crore were devolved, while Bank Guarantees (BGs) amounting to approximately Rs 164.59 crore were invoked, resulting in the generation of alleged proceeds of crime.

Funds Routed Through Entities

According to the agency, a substantial portion of these funds was subsequently routed through various beneficiary and intermediary entities before being diverted to AIPL and its group entities through complex, multi-layered transactions designed to conceal the actual origin and movement of capital.

The investigation also revealed that foreign bank guarantees were allegedly opened in the guise of exports of glazed tiles. However, the purported shipments were never actually executed, with funds instead remitted to foreign entities based in Singapore and Hong Kong.

Several of these LCs and BGs subsequently devolved or were invoked due to non-payment by AIPL, allegedly resulting in wrongful loss to the lending banks and the systematic siphoning of diverted funds.

Documents And Digital Devices Seized

Considering the gravity of the offence and the financial trail traced during the investigation, the ED searched premises linked to the accused persons, their close associates, family members, and entities reflecting financial linkages with the accused were covered under search operations.

Also Watch:

During the searches, the agency also seized documents and digital devices containing details of bank transactions, LCs, BGs and immovable properties allegedly linked to the accused persons and other suspect entities.

The ED said the seized material is expected to help establish the trail of the alleged proceeds of crime and the manner in which the funds were layered through banking channels.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/