A Special PMLA court has extended the ED custody of three accused individuals until May 12 in connection with a Rs 284 crore money laundering and bank loan fraud case involving Sravanthi Group promoter D.V. Rao and his associates. The court granted the ED’s request to interrogate the accused, citing the seriousness of the allegations and their involvement in money laundering.
The ED’s investigation into Rao and his associates has uncovered significant money laundering activities totaling around Rs 284 crore. Following searches at companies linked to the Group, two directors, D.V. Rao and D. Shanthi Kiran, along with Rao’s brother, D. Avanindra Kumar, were arrested by the ED. During earlier search operations, the ED seized gold, diamond jewelry worth about Rs 5 crore, and several luxury vehicles owned by Rao and his family members.
In a separate development, the ED issued a Provisional Attachment Order under the Prevention of Money Laundering Act, 2002, against Sravanthi Energy Pvt Ltd (SEPL) and other entities. As part of this action, five residential properties were attached on March 3, 2026, with immovable and movable properties worth Rs 24 crore seized by the ED in the case. These assets include house properties, industrial/agricultural land spanning Andhra Pradesh, Telangana, and Karnataka, owned by Rao and his family members.
The investigation originated from a registered scheduled offence at Police Station Sector-40, Gurugram, where it was alleged that M/s DJW Electric Power Projects Private Ltd., controlled by Rao, had fraudulently obtained loans from various entities. The ED’s probe revealed a sophisticated modus operandi where loan repayment funds were diverted to shell companies through fraudulent RTGS mandates, instead of being returned to legitimate lenders.
