ED Freezes Rs 18 Crore in Rs 899 Crore Deepak Cables Bank Fraud Case

The Enforcement Directorate (ED) has seized valuables worth Rs 1.27 crore and frozen bank accounts containing approximately Rs 18 crore as part of an investigation into an alleged Rs 899.35 crore bank loan diversion case involving Deepak Cables (India) Limited (DCIL). The action was carried out by the agency’s Bengaluru zonal office following a series of searches conducted between May 21 and May 29 under provisions of the Prevention of Money Laundering Act (PMLA), 2002.

According to the ED, the case relates to allegations that DCIL cheated a consortium of banks led by the State Bank of India by obtaining substantial credit facilities and subsequently diverting the loan funds. Investigators are examining the movement and utilization of the borrowed money, with authorities alleging that the funds were not used for the purposes for which they were originally sanctioned by the lending institutions.

The agency stated that searches were conducted at multiple locations connected to the case. During these operations, officials seized several documents and records that they described as incriminating. The materials reportedly relate to DCIL, its director K. Venkateswara Rao, Mahesh Agarwal of Kolkata, who is associated with Adhunik Corporation Ltd., and other individuals under investigation. The documents have been taken into custody for further examination as part of the money laundering probe.

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According to the ED, the investigation was initiated on the basis of a First Information Report and subsequent findings concerning the alleged diversion of bank funds. The agency claims that the accused persons used a network of entities to facilitate transactions that were not genuine. Investigators are examining allegations involving fictitious sales and purchases, circular trading arrangements, and the issuance of allegedly fraudulent corporate guarantees.

The probe has also focused on the financial relationships between various companies and individuals linked to the case. Authorities allege that multiple entities were used to create layers of transactions that obscured the actual flow of funds. Such arrangements are being scrutinized to determine whether they were designed to conceal the alleged diversion of loan proceeds and to generate unlawful financial gains.

The Enforcement Directorate has indicated that the investigation remains ongoing and that additional evidence is being analyzed. The seized assets, frozen bank accounts, and recovered documents are expected to form part of the agency’s efforts to trace the alleged proceeds of crime and identify all individuals and entities involved. Further legal action may follow depending on the outcome of the continuing investigation.

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