In a significant breakthrough for Indian law enforcement agencies, fugitive businessman Praveen Kumar Kapoor, the co-founder and promoter of the real estate conglomerate SRS Group, was apprehended in the United States and subsequently deported to India. Kapoor, 62, is accused of orchestrating a massive financial fraud involving the embezzlement of funds worth approximately ₹2,200 crore from investors and banks. His detention marks a major development in one of India’s largest corporate fraud cases, which has been under investigation by multiple agencies, including the Enforcement Directorate (ED), the Central Bureau of Investigation (CBI), and the Haryana Police.

According to officials familiar with the case, Kapoor was intercepted by authorities at Newark International Airport in New Jersey on October 31, 2025, while attempting to enter New York. Acting on an Interpol Red Notice issued earlier this year, US immigration authorities detained Kapoor and subsequently cancelled his B1/B2 visa. He was deported to India the following day, November 1, and arrived in New Delhi on November 2, where he was taken into custody by the Faridabad police. His arrest was the result of months of coordination between Indian and international enforcement agencies.

The Background of the Case

Kapoor, a resident of Faridabad, was one of the principal promoters of SRS Group, a diversified business conglomerate that operated in real estate, finance, jewellery, and other sectors. Along with Jitender Kumar Garg and Sunil Jindal, Kapoor is accused of orchestrating a complex financial fraud that cheated thousands of investors, depositors, and several banks. All three had been absconding for several years, and according to the ED, they were believed to be residing in Georgia and Dubai during their time on the run.

The SRS Group scam first came to light after multiple investors lodged complaints alleging that the company had lured them into investing large sums of money with the promise of exceptionally high returns. The funds were allegedly collected for various residential and commercial real estate projects, which were either delayed indefinitely or never completed. Many of these investors, including homebuyers, later discovered that their money had been siphoned off through a web of shell companies linked to SRS Group’s promoters.

In August 2025, the Enforcement Directorate initiated proceedings under the Fugitive Economic Offenders Act (FEOA) against Kapoor and his associates. The ED’s findings revealed that all three accused had left India years ago and were evading arrest while continuing to manage their assets abroad. Based on these findings, an Interpol Red Notice was issued, eventually leading to Kapoor’s detention in the United States.

The Modus Operandi of the Scam

According to officials investigating the case, the SRS Group’s operations were built on a foundation of deception and financial manipulation. The group allegedly used hundreds of shell companies to funnel investor money into various accounts and then laundered the funds through circular transactions and round-tripping of capital. This created an artificial image of strong financial performance and credibility, allowing the company to secure even more investments and loans from private and public sector banks.

Investigators have stated that the accused inflated the company’s financial records to obtain large-scale loans under the guise of funding construction and development projects. Once the funds were disbursed, they were diverted to other entities controlled by Kapoor, his family members, and business partners. These companies, often registered in the names of relatives or associates, acted as conduits for money laundering and concealment of illicit assets.

The ED’s probe revealed that the fraudulent transactions were designed to create a continuous cycle of borrowing, investment, and misappropriation, leaving investors and banks in massive financial distress. The money laundering angle was further strengthened by the discovery that the diverted funds had been transferred not only within India but also to foreign accounts and businesses linked to the accused.

Ongoing Investigation and Asset Seizure

The Enforcement Directorate has so far attached assets worth ₹2,215 crore belonging to Kapoor, Jitender Kumar Garg, Sunil Jindal, and their associated firms under the Prevention of Money Laundering Act (PMLA). These assets include properties, vehicles, bank accounts, and shares across multiple states. The ED’s August 2025 statement confirmed that 81 First Information Reports (FIRs) were registered across various police stations in Haryana and other states, forming the basis of its money laundering investigation.

The agency alleged that SRS Group had systematically misused the trust of investors by collecting deposits under the promise of high returns and then channeling the money into fictitious ventures. In many cases, investors were shown false documents indicating ownership of real estate projects or stakes in lucrative business ventures. When the company failed to deliver returns, complaints began pouring in, leading to the registration of multiple criminal cases.

Upon Kapoor’s deportation to India, the Faridabad police immediately took him into custody for interrogation. Officials have stated that Kapoor is currently being questioned about the whereabouts of the two remaining absconding directors, Garg and Jindal, as well as the movement of laundered funds. The ED is expected to formally take custody of Kapoor soon to pursue deeper financial tracing and recovery efforts.

An officer involved in the case said that Kapoor’s interrogation will likely shed light on the international money trail, including accounts in offshore jurisdictions and transactions routed through intermediary firms in Georgia, Dubai, and possibly other tax havens. Investigators also hope to recover critical documents and digital evidence that may expose the network of companies used to conceal diverted funds.

Broader Implications and Legal Proceedings

Kapoor’s return to India represents a major step forward for Indian authorities in their ongoing crackdown on fugitive economic offenders. The Fugitive Economic Offenders Act, 2018, was enacted precisely to deal with cases like these, allowing the confiscation of assets of individuals who evade Indian law by remaining abroad. Recent high-profile extraditions and deportations — such as that of Mehul Choksi’s associates and others involved in large-scale frauds — have emboldened the government’s pursuit of economic offenders across jurisdictions.

In the case of SRS Group, the ED and CBI are working in tandem with the Ministry of External Affairs and Interpol to ensure the repatriation of the remaining accused. Legal experts suggest that Kapoor’s deportation could strengthen the prosecution’s case and help expedite proceedings in both the criminal and money laundering cases pending before courts in Haryana and Delhi.

The SRS Group case has also reignited discussions about regulatory oversight in India’s real estate and finance sectors. The scandal highlights how a lack of stringent auditing and due diligence enabled the company to defraud investors for years before enforcement agencies stepped in. Many investors who lost their life savings are still waiting for restitution.

Conclusion

The arrest and deportation of Praveen Kumar Kapoor mark a critical moment in India’s fight against white-collar crime and financial fraud. It underscores the growing effectiveness of global law enforcement cooperation in ensuring that fugitives cannot escape justice simply by crossing borders. For the thousands of investors and depositors defrauded by the SRS Group, Kapoor’s return to India brings a renewed sense of hope that justice may finally be served.

As the Enforcement Directorate prepares to take his custody for detailed questioning, the focus now shifts to tracing the complete financial trail and recovering the siphoned funds. The eventual prosecution of Kapoor and his associates will likely serve as a deterrent to corporate wrongdoers who attempt to exploit legal loopholes and evade accountability. The case also reaffirms India’s commitment to holding fugitive economic offenders responsible — no matter where they hide.