The Serious Fraud Office has opened an investigation into tycoon Sanjeev Gupta's business empire - including links to failed financier Greensill Capital.
In a statement, the watchdog 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."
GFG is the parent company of Liberty Steel, and was left battling to secure alternative funding after Greensill - its main lender -folded.
Mr Gupta's companies were among the main clients of Greensill before it collapsed earlier this year.
GFG's reliance on Greensill caused many to worry that it might itself be at risk following the finance firm's demise.
Earlier this week Greensill founder Lex Greensill and David Cameron, who lobbied for the company, appeared before Parliament.
The SFO added: "As this is a live investigation, the SFO can provide no further comment."
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