New Delhi | The Enforcement Directorate (ED) has arrested Sravanthi Group promoter Dandamudi Venkateswara Rao, also known as D.V. Rao, in connection with a ₹284 crore money laundering case. Two other accused have also been taken into custody in the same operation. According to the agency, the case involves a large-scale financial fraud operation using a network of shell companies to siphon funds from the banking system.
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 obtained loans from multiple financial institutions. During the probe, it emerged that the RTGS banking system was systematically misused by listing genuine lenders’ names while diverting payments to accounts belonging to Kolkata-based shell entities.
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According to the ED, although the RTGS mandate forms mentioned legitimate lending institutions, the bank account details provided were linked to fake shell companies. As a result, loan funds never reached the actual lenders and were instead routed through a network of suspicious entities before being further transferred across multiple accounts to obscure the money trail.
The investigation further revealed that a parallel laundering mechanism was operating through Sravanthi Energy Private Limited. In this setup, a shell company was reportedly paid around ₹75 lakh every month as consultancy fees, despite having no physical office, staff, or legitimate business operations. Through this arrangement, over ₹89 crore was allegedly diverted.
In addition, the ED found that more than 100 shell entities were used to generate bogus invoices, showing fake purchases worth over ₹139 crore. However, no actual goods or services were ever delivered. The entire structure functioned as a paper-based transaction system designed solely to circulate and disguise illicit funds.
The agency stated that due to these fraudulent activities, the banking system suffered significant losses. Several outstanding loans turned into non-performing assets (NPAs), and Sravanthi Energy Private Limited eventually defaulted, resulting in losses exceeding ₹1,500 crore for banks during a one-time settlement process.
The ED also noted that despite multiple summons, D.V. Rao did not cooperate with the investigation and remained absconding. Following this, a non-bailable warrant was issued by the court against him.
Officials further stated that the case reflects a coordinated financial fraud involving misuse of banking channels, RTGS transfers, shell companies, and fabricated invoices to divert large sums of money. The ED is now continuing its investigation to trace additional beneficiaries and map the broader financial network involved in the case.
