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

On September 15, 2026, the Enforcement Directorate (ED) initiated a coordinated search at 11 locations across Mumbai and Delhi, linked to the civil construction firm Alfara'a Infraprojects Pvt Ltd (AIPL) and its key stakeholders. This operation, conducted under the Prevention of Money Laundering Act (PMLA), was part of an ongoing investigation into alleged bank fraud involving credit facilities exceeding Rs 360 crore.

Cash totaling Rs 18 lakh, USD 9,567 and 860 Kwacha were seized during the raids. In addition, fixed deposits valued at approximately Rs 1.02 crore, JPY 1.75 crore and USD 1,03,145 were frozen. The money-laundering probe was launched following a complaint from Bank of Baroda and was prompted by an FIR registered by the Central Bureau of Investigation’s (CBI) Economic Offences Branch (EOB) in Chennai.

AIPL had initially taken credit facilities worth Rs 103 crore from Bank of Baroda in 2012, which were later increased to Rs 360.50 crore in 2015. The account was categorized as a non-performing asset (NPA) on June 18, 2018, with an outstanding balance of Rs 255.74 crore. The ED's preliminary findings suggest that Letters of Credit (LCs) worth Rs 75.02 crore and Bank Guarantees (BGs) amounting to Rs 164.59 crore were utilized, generating alleged proceeds of crime.

The investigation also revealed that these funds were subsequently funneled through various intermediary entities before being directed towards AIPL and its associated entities via intricate, multi-layered transactions designed to obscure the origin and flow of capital. Additionally, the agency discovered that foreign bank guarantees were purportedly issued for exports of glazed tiles, despite no actual shipments taking place. Funds were remitted instead to entities based in Singapore and Hong Kong.

Documents and digital devices containing transaction details, LCs, BGs, and immovable properties were also seized during the searches. The ED plans to utilize the seized material to trace the alleged proceeds of crime and the methods used to layer the funds through banking channels. During the operations, the agency targeted assets of accused persons, their associates, family members, and entities with financial connections to the accused.