Raids Conducted Across 6 Locations; 33 Bank Accounts Frozen in Massive Loan Diversion Scam.
The Enforcement Directorate (ED) has launched a major crackdown in Hyderabad, raiding six premises connected to a ₹621.78 crore bank fraud case involving SEW LSY Highways Ltd and associated companies.
The investigation stems from a Central Bureau of Investigation (CBI) FIR accusing the company’s promoters and directors of loan siphoning, cheating, and criminal misconduct related to a high-value infrastructure project in Uttar Pradesh.
🔍 What Is the Scam About?
- SEW LSY Highways Ltd was set up as a Special Purpose Vehicle (SPV) to build a highway under the Uttar Pradesh State Highway Authority.
- The project was backed by a ₹1,700 crore term loan from a 14-bank consortium led by Punjab National Bank (PNB).
- Of this, ₹603.68 crore was disbursed, but the project remained incomplete and the loan turned into an NPA (Non-Performing Asset).
🕵️♂️ What ED Found
According to the ED:
- The funds were diverted using intra-group sub-contracting, primarily through SEW Transport Networks Ltd (STNL) and then on to Prasad & Company (PSPWPL).
- PSPWPL allegedly funneled the money back into the system as “promoter contribution,” violating lending conditions.
- 33 bank accounts related to SEW Infrastructure Ltd, its directors, and their family members have been frozen.
👥 Who’s Involved?
- SEW Infrastructure Ltd, founded in 1983 by Vallurupalli Nageswara Rao, is the parent company at the heart of the investigation.
- The probe also involves group firms and senior executives, though no arrests have been reported yet.
⚠️ Why This Matters
- The case reflects the widening crackdown on corporate loan fraud in India, especially in the infrastructure and real estate sectors.
- With the banking sector already under pressure, such NPAs contribute to massive losses of public money.
- The use of circular funding and layered sub-contracting to mask misappropriation is a growing red flag for regulators.
🧊 Assets Frozen So Far
- 33 accounts frozen (belonging to the accused companies and individuals).
- Further action is expected as the investigation unfolds.
📰 Conclusion
The ₹621 crore highway project scam is yet another reminder of the urgent need for transparency, stricter auditing, and better oversight in government-backed infrastructure ventures.
As India pushes forward on its ambitious road development agenda, the watchdogs are watching—closely.
