Alphara Infra Projects accused of siphoning Rs 255 crore through fake guarantees

Alphara Infra Projects Private Limited (AIPL) and its senior management have been placed under intense scrutiny after the Enforcement Directorate (ED) raided eleven sites in Mumbai and Delhi. The agency alleges that the firm orchestrated a fraud scheme amounting to Rs 255.74 crore against Bank of Baroda, employing a series of fabricated letters of credit and bank guarantees to launder money.

The fraud narrative began in 2012 when AIPL secured a Rs 103 crore credit facility from the bank. The loan was subsequently increased to Rs 360.50 crore in 2015. By mid‑2018, the loan turned non‑performing, leaving a massive outstanding balance of Rs 255.74 crore.

Forensic analysis indicates that about Rs 75.02 crore in letters of credit were deliberately dissolved, while bank guarantees worth roughly Rs 164.59 crore were invoked. The proceeds generated from these instruments were routed through a chain of beneficiary companies and intermediaries before being funneled back to AIPL and its group entities, effectively masking the illicit origin of the funds.

The investigation also uncovered that AIPL had obtained foreign bank guarantees under the pretense of exporting glazed tiles, a transaction that never materialised. The bogus guarantees enabled the transfer of money to shell companies in Singapore and Hong Kong, culminating in substantial losses for Bank of Baroda when the guarantees defaulted.

During the operation, the ED seized cash amounting to Rs 18 lakh, US$9,567 and 860 Qatari riyals. Fixed deposits of approximately Rs 1.02 crore, Japanese yen equivalent to Rs 1.75 crore and US$103,145 were frozen. A wide array of documents, digital storage devices and records related to the accused’s banking activities, guarantees and real‑estate holdings were also confiscated, providing vital leads for the continuing probe.