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NDTV
24-07-2025
- Business
- NDTV
ED Raids 6 Sites In Hyderabad Over Rs 621 Crore Scam Linked To Highway Project
The Enforcement Directorate (ED) on Tuesday conducted searches across six locations in Hyderabad in connection with a Rs 621-crore bank-fraud case against the promoters and directors of a company and its associate firms. The investigation was based on an FIR registered by the Central Bureau of Investigation (CBI) against SEW LSY Highways Limited and others for allegedly siphoning off loan funds, cheating, and criminal misconduct, resulting in the loss of public money, the probe agency said in a statement. The raids targeted SEW Infrastructure Limited (SIL), Prasad & Company (Project Works) Private Limited (PSPWPL), their group firms, and directors, the ED said. SEW LSY Highways Limited was incorporated as a special purpose vehicle (SPV) for the execution of a highway project assigned by the Uttar Pradesh State Highway Authority to a consortium of SIL and PSPWPL. The project was backed by a Rs 1,700-crore term loan from a consortium of 14 banks led by Punjab National Bank, of which Rs 603.68 crore was disbursed. The ED's probe revealed a complex scheme of intra-group sub-contracting where work was passed on at successively lower values, primarily through SEW Transport Networks Ltd (STNL) and then to PSPWPL. It alleged that part of the loan funds was diverted to PSPWPL, which then infused these funds back as the promoters' contribution, violating loan conditions. "However, the project was not completed and the term loan became a non-performing asset, resulting in an outstanding amount of Rs 621.78 crore to the banks," the ED said. Additionally, 33 bank accounts belonging to SEW Infrastructure Limited, as well as their directors and relatives were frozen during the search operations. SEW Infrastructure Ltd. was founded in 1983 by Vallurupalli Nageswara Rao and is based in Hyderabad.
Time of India
23-07-2025
- Business
- Time of India
ED raids 6 locations in Rs 621 cr loan fraud case linked to SEW Infra
Hyderabad: Enforcement Directorate on Tuesday conducted searches at six locations in Hyderabad in connection with a Rs 621 crore loan fraud involving SEW Infrastructure Limited (SIL), Prasad & Company (Project Works) Private Limited (PSPWPL), their group entities, and directors. The searches were carried out under the Prevention of Money Laundering Act. The ED seized financial records, evidence of fund diversion, and property documents valued at approximately ₹120 crore, allegedly in the names of the promoters and their family members. As part of the search operations, the ED also froze 33 bank accounts linked to SIL, SEW Transport Networks Ltd (STNL), their directors, and relatives. The searches were carried out based on a CBI FIR (dated Sept 16, 2020), filed by the agency's anti-corruption branch, Hyderabad, against SEW LSY Highways Ltd and others under charges of criminal conspiracy, cheating, and violations of the Prevention of Corruption Act. The case involves the alleged diversion and siphoning off sanctioned loan amounts, resulting in significant losses to public sector banks. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad SEW LSY Highways was established as a special purpose vehicle (SPV) to execute a highway project awarded by the Uttar Pradesh State Highway Authority to a consortium comprising SIL and PSPWPL. The project was backed by a Rs 1,700 crore term loan sanctioned by a consortium of 14 banks led by Punjab National Bank , of which Rs 603 crore was disbursed. The ED investigation revealed that SIL had awarded the engineering, procurement, and construction contract to its group entity STNL, which subsequently subcontracted it at lower rates to entities, including PSPWPL. PSPWPL further subcontracted the work at even lower rates, suggesting a circular flow of funds among related entities, designed to divert the loan proceeds, ED alleged. The probe also revealed that PSPWPL, which held a 30% stake in SEW LSY Highways, reportedly received diverted loan amounts and routed them back to the SPV as promoter's contribution, in violation of loan conditions. The highway project remains incomplete, and the loan has since turned into a non-performing asset, with Rs 621 crore outstanding to the lending banks.
The Hindu
23-07-2025
- Business
- The Hindu
₹621 crore bank fraud: ED raids firms
The Enforcement Directorate (ED) conducted search operations at six locations in Hyderabad in connection with a large-scale bank fraud linked to M/s SEW Infrastructure Ltd. (SIL), M/s Prasad and Company (Project Works) Pvt. Ltd. (PSPWPL), their group firms and promoters. The money laundering probe stems from a case registered by the Central Bureau of Investigation (CBI) against M/s SEW LSY Highways Limited and others for siphoning of loan funds, cheating and criminal misconduct, leading to loss of public money. M/s SEW LSY Highways Ltd was incorporated as a Special Purpose Vehicle (SPV) for the execution of a highway concession contract awarded by the Uttar Pradesh State Highway Authority to a consortium of M/s SIL and M/s PSPWPL. The SPV was sanctioned a term loan of ₹1,700 crore by a consortium of 14 banks led by Punjab National Bank. The Engineering, Procurement and Construction (EPC) contracts for the project were awarded to M/s SIL and its group entities, which in turn sub-contracted the work to other firms. The ED's investigation has revealed a complex web of intra-group sub-contracting through entities such as SEW Transport Networks Ltd (STNL), with work being passed on at successively lower values. This practice enabled the promoters to divert and siphon off substantial portions of the loan funds. PSPWPL, which held a 30% stake in the SPV, also received diverted funds and subsequently infused them back as the promoters' required equity contribution, instead of it coming from legitimate sources. Even after ₹603.68 crore was disbursed by the banks to SEW LSY Highways Ltd, the project remained incomplete and the loan account eventually turned into a non-performing asset. The outstanding amount now stands at ₹621.78 crore. During the search operations on July 22, the ED seized incriminating financial records and property documents, valued at approximately ₹120 crore, held in the names of the promoters and their family members. In addition, 33 bank accounts belonging to SEW Infrastructure Ltd, SEW Transport Networks Ltd, their directors and relatives have been frozen. Further investigation is underway.
