The Serious Fraud Office in the United Kingdom has confirmed it has launched a fraud and money laundering investigation into the Gupta Family Group’s financial arrangements with failed financing firm Greensill Capital.

A Serious Fraud Office spokesperson said: “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. As this is a live investigation, the SFO can provide no further comment.”

The SFO is not at this stage revealing the exact scope of the investigation.

However in recent weeks, questions have been raised about the metals business empire’s links with Greensill. GFG, founded by steel magnate Sanjeev Gupta, funded its growth with the help of Greensill loans, totalling a reported $5bn. Greensill collapsed in March, saying it was “hit by defaults” from GFG.

Concerns have been raised about GFG’s practice of borrowing against invoices for potential future clients. The company admitted in February that it borrowed from Greensill on the basis of “prospective receivables”.

GFG Alliance said it would co-operate fully with the investigation.

“As these matters are the subject of an SFO investigation we cannot make any further comment,” a GFG spokesperson added.

Former UK Prime Minister David Cameron has also worked for Greensill Capital and his reported lobbying of the government on its behalf has generated headlines in the UK.