LONDON (Reuters) – Britain’s Serious Fraud Office (SFO) is investigating Gupta Family Group Alliance, including its financing arrangements with collapsed Greensill Capital, it said on Friday.
“The SFO is investigating suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the Gupta Family Group Alliance (GFG), including its financing arrangements with Greensill Capital UK Ltd,” the SFO said in a statement.
A representative of GFG Alliance, steel magnate Sanjeev Gupta’s family conglomerate, said the group had no immediate comment on the matter.
The SFO said it had no further comment given it was a live investigation.
GFG Alliance, Gupta’s privately held conglomerate, has relied heavily on Greensill Capital to fund its operations.
Greensill is facing insolvency after its main insurer stopped providing credit insurance on $4.1 billion of debt in portfolios it had created for clients including Credit Suisse.
Britain’s Financial Conduct Authority said on Tuesday it was formally investigating the UK operations of supply chain finance company Greensill as part of global probes.
Greensill lent money to firms by buying their invoices at a discount, but collapsed in March 2021 after insurers pulled their cover.
(Reporting by Huw Jones; editing by David Goodman and Jason Neely)
