The SFO said in a statement that it was investigating “suspicions of fraud, fraudulent trade and money laundering in relation to the financing and conduct of business of companies within the Gupta Family Group Alliance (GFG) “.
He said the investigation included GFG’s financing deals with Greensill Capital, the lender led by Lex Greensill who collapsed earlier this year.
GFG said in a statement that it will cooperate fully with the investigation.
The announcement comes a day after former Prime Minister David Cameron comes under scrutiny by MPs for lobbying on behalf of Greensill on access to a Bank of England emergency business support program put in place at the start of the coronavirus crisis.
Mr Gupta’s GFG Alliance controls Liberty Steel, whose 3,000 UK workers have faced uncertainty since Greensill’s disappearance.
Last month the tycoon promised in an interview with Sky News that, under its supervision, none of its steelworks would close.
Separately, the Financial Conduct Authority said earlier this week that it was investigating Greensill’s UK operations.
A spokesperson for the GFG Alliance said: “The GFG Alliance will fully cooperate with the investigation.
“As these issues are being investigated by the OFS, we cannot comment further.
“GFG Alliance continues to serve customers around the world and is making progress in refinancing its operations which benefit from operational improvements it has made and very strong markets for steel, aluminum and iron ore. “
GFG is a global network of hundreds of private companies with interests spanning steel, aluminum, mining, financial services and real estate.
Its employees number 35,000 and have annual sales of $ 20 billion.