ED Arrests Sravanthi Group Promoter D.V. Rao in ₹284 Crore Money Laundering Case

The Enforcement Directorate (ED) has arrested Sravanthi Group promoter Dandamudi Venkateswara Rao, popularly known as D.V. Rao, along with two others in a money laundering case involving alleged laundering of nearly ₹284 crore.

According to the ED, the investigation began on the basis of an FIR registered at Sector-40 Police Station in Gurugram. The complaint alleged that DJW Electric Power Projects Private Limited, controlled by D.V. Rao, fraudulently secured loans from several entities.

The agency stated that the accused allegedly misused the RTGS banking system by mentioning the names of genuine lenders while inserting bank account details of shell companies based in Kolkata in RTGS mandate forms. As a result, loan repayment funds were allegedly diverted to shell entities instead of being returned to the actual lenders.

During the probe under the Prevention of Money Laundering Act (PMLA), 2002, the ED also uncovered another alleged money laundering operation involving Sravanthi Energy Private Limited. The agency claimed that the company made fraudulent consultancy payments of around ₹75 lakh every month to a shell company that allegedly had no office, employees, or legitimate business activities. Through this arrangement, over ₹89 crore was allegedly diverted.

The ED further alleged that the company booked bogus purchases worth more than ₹139 crore using fake invoices issued by over 100 shell entities without any actual supply of goods or services.

According to the agency, D.V. Rao also defaulted on massive bank loans, leading Sravanthi Energy Private Limited to become a Non-Performing Asset (NPA). The ED alleged that the banking system suffered losses exceeding ₹1,500 crore through a One-Time Settlement (OTS) process.

The agency stated that despite repeated summons, D.V. Rao remained absconding and failed to cooperate with the investigation. Following this, a court issued a non-bailable warrant against him.