Enforcement Directorate seizes 6.35 crore in SREI loan default case

The Enforcement Directorate (ED) has seized and frozen assets worth approximately 6.35 crore rupees as part of a money laundering investigation involving the SREI Group. The raids, conducted by the ED's Kolkata zonal office, targeted the promoters and associated entities of the Odisha-based ARSS Group and the Hyderabad-based AMR/AMRL Group.

The seized assets include 1.50 crore rupees in bank balances, 2.90 crore rupees in Demat and security holdings, and 1.95 crore rupees in cash and jewelry. The investigation stems from fraudulent and irregular loans taken from SREI Infrastructure Finance Limited (SIFL) and SREI Equipment Finance Limited (SEFL), which subsequently went into default.

Authorities allege irregularities such as 'evergreening'—taking new loans to repay old ones—as well as fund diversion and round-tripping. The ARSS Group and AMR/AMRL Group reportedly owe a total of 1,111 crore rupees to SREI. During the searches, officials also seized digital devices, account books, and various documents related to movable and immovable properties.