Last Updated on May 9, 2026 10:43 pm by BIZNAMA NEWS
AMN
The Enforcement Directorate has arrested Sravanthi Group promoter Dandamudi Venkateswara Rao, also known as D.V. Rao, along with two others in connection with a money laundering case involving alleged laundering of around 284 crore rupees. The agency said, the investigation originated from an FIR registered at Sector-40 police station in Gurugram, alleging that DJW Electric Power Projects Private Limited, controlled by D.V. Rao, had fraudulently availed loans from various entities.
The ED said that the accused misused the RTGS banking system by fraudulently mentioning the names of actual lenders while providing bank details of Kolkata-based shell entities in RTGS mandate forms. The agency said, loan repayment funds were diverted to shell companies instead of being returned to legitimate lenders. It informed that further investigation under Prevention of Money Laundering Act 2002 (PMLA) revealed that a parallel money laundering investigation involving Sravanthi Energy Private Limited uncovered fraudulent payments of around 75 lakh rupees per month as consultancy fees to a shell company with no office or employees. The agency said that over 89 crore rupees were diverted through the arrangement.
The agency also said that the company also booked bogus purchases worth more than 139 crore rupees through fake invoices issued by over 100 shell entities without any supply of goods or services. According to the ED, the investigation further revealed that D.V. Rao had defaulted on huge amounts to banks, resulting in Sravanthi Energy Private Limited becoming a Non-Performing Asset and causing losses of more than 1,500 crore rupees to the banking system through a One-Time Settlement process. The ED stated that despite multiple summons, D.V. Rao remained absconded and did not cooperate with the investigation, following which a non-bailable warrant was issued against him by the court.