ED raids Path group in Mhow:Companies under scrutiny for embezzling crores; linked to Anil Ambani bank loan case

In a significant development, the Enforcement Directorate (ED) on Tuesday morning conducted a major raid on the Path India Limited group, also known as Prakash Asphalting and Toll Highways India Limited, in Mahu. The action is reportedly linked to ongoing investigations into a bank loan fraud involving Anil Ambani’s companies. ED officials arrived in five to six vehicles and carried out searches at both the company offices and the residence of Path Group Managing Director (MD) Nitin Agrawal. During the raid, officials seized documents, computers, and digital devices, which will now be examined for evidence of alleged financial irregularities. Investigation linked to Anil Ambani bank loan case Sources within the ED said that the raid forms part of the larger probe into a bank loan scam associated with Anil Ambani. According to preliminary information, several construction projects involved agreements between Anil Ambani’s company and the Path Group. The ED suspects that these agreements were allegedly used to siphon crores of rupees through complex financial arrangements, raising questions about the legality of the transactions. Action at Nitin Agrawal’s bungalow The primary focus of the raid was MD Nitin Agrawal’s bungalow located in the Army area on Mall Road (Bungalow No. 76). Security measures were immediately implemented, with the main gate locked from outside and police personnel deployed to maintain order. ED officials conducted a detailed search of the premises, including offices and storage areas, to collect relevant documents and digital evidence. Company leadership and affiliations Path India Limited is led by MD Nitin Agrawal. Other key directors include Nipun Agrawal, Saksham Agrawal, Neeti Agrawal, and Santosh Agrawal. Independent directors Ashish Agrawal and Aditya Upadhyay also oversee certain company operations. Notably, Nitin Agrawal is a co-owner of the Mumbai team in the Indian Street Premier League (ISPL), along with Bollywood actor Amitabh Bachchan. The company is not only involved in large-scale road construction projects across India but also operates several toll plazas. Additionally, Path India Limited is engaged in manufacturing combat drones for the Indian Army at its Mahu facility and has collaborated with IIT Kanpur startup VU Dynamic to advance drone technology. The ED raid led to an immediate closure of company offices for the day. Past controversies and Income Tax Department raids Path Group has been under scrutiny in the past. Approximately ten years ago, the Income Tax Department had raided the company after uncovering irregularities related to a highway project in Rajasthan. The project, originally awarded to an Anil Ambani company, was subcontracted to Path Group. During that time, it was discovered that two agreements had been drawn—one official and another secret. The secret agreement allowed the transfer of additional funds through multiple companies, some of which were later routed through Dubai before being brought back to India. Investigations suggested links between these transactions and Anil Ambani’s business group. Continued scrutiny and ongoing investigation The ED is now examining whether similar irregularities occurred in current or past agreements between Path Group and Anil Ambani-related companies. Officials are analyzing financial records, contracts, and digital communication to trace the flow of funds and uncover potential money laundering activities. Sources also noted that Path Group’s significant involvement in defense projects, such as drone manufacturing for the Army, makes transparency and compliance especially critical. Authorities have emphasized that the investigation will focus strictly on financial dealings and potential fraud related to construction and infrastructure projects, rather than ongoing defense work. Company response As of now, Path India Limited has not issued an official statement regarding the ED raid. The company’s operations across the country, including road construction projects and toll management, remain under observation while authorities continue their inquiry. The ED action in Mahu is expected to shed further light on the alleged misuse of financial agreements and potential links with Anil Ambani’s group. Investigators are likely to examine both past and present agreements to determine whether crores of rupees were misappropriated and routed through complex company structures to conceal the transactions.