Hyderabad: The Enforcement Directorate(ED) on Tuesday raided multiple premises in Hyderabad in connection with a money laundering probe linked to a ₹621.78 crore bank fraud involving loans sanctioned for Uttar Pradesh State Highway Authority projects.
Six locations tied to SEW Infrastructure Ltd (SIL), Prasad and Company Project Works Pvt Ltd (PSPWPPL), and associated promoters and directors were searched. Officials seized property documents worth ₹120 crore and froze 33 bank accounts linked to the accused and their families.
The investigation stems from a CBI case against SEW LSY Highways Ltd, part of a consortium that includes SIL and PSPWPPL. The group had secured ₹1,700 crore in term loans from a 14-bank consortium led by Punjab National Bank.
ED findings revealed that instead of executing the assigned infrastructure works, the consortium awarded subcontracts at undervalued rates. A disbursed amount of ₹603.68 crore was rerouted from SEW LSY Highways Ltd to PSPWPPL, allegedly without project execution or repayment.
The loan turned into a non-performing asset, causing a direct loss of ₹621.78 crore to the lending banks.
