New Delhi: The Enforcement Directorate (ED) on Friday launched search operations at multiple premises linked to the promoters and associated entities of the ARSS Group and AMR/AMRL Group as part of a money-laundering investigation involving alleged irregular loans.
The searches are being conducted under provisions of the Prevention of Money Laundering Act (PMLA), 2002, at locations across Kolkata, Chennai, Bengaluru and Hyderabad.
Who Is Under ED Scanner?
According to the ED, the searches cover premises connected with Odisha-based ARSS Group, including members of its erstwhile promoter and director families.
Those named by the agency include Anil Agarwal, Rajesh Agarwal, Sunil Agarwal and Subhash Agarwal.
Premises associated with the AMR/AMRL Group, linked to promoter Mahesh Kumar Reddy Althuru, are also being searched.
The searches form part of an ongoing investigation, and the allegations cited by the agency have not yet been established by a court.
What Is The Case About?
The ED investigation concerns alleged fraudulent or irregular loans obtained from SREI Infrastructure Finance Ltd (SIFL) and SREI Equipment Finance Ltd (SEFL).
The agency is examining allegations concerning the subsequent non-repayment of these loans as well as suspected financial irregularities surrounding the transactions.
Investigators are probing whether funds were allegedly diverted or routed through different entities instead of being used for their stated purposes.
ED Probing Suspected Evergreening And Round-Tripping
The investigation also covers suspected evergreening of loans, a practice in which fresh credit or financial arrangements may be used to prevent an existing stressed loan from appearing as a default.
The ED is also looking into suspected round-tripping and diversion of funds, along with other alleged irregularities linked to the loan transactions.
Search operations were underway across the four cities, and further details about any documents, assets or other material recovered during the raids were awaited.
