The Enforcement Directorate (ED) has provisionally attached immovable assets worth approximately ₹51.28 crore belonging to Deepak Cable (India) Ltd. (DCIL), its promoters, and associated entities in connection with an alleged bank loan fraud and money laundering case. According to the agency, the attached properties have an estimated current market value of more than ₹150 crore. The action has been taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The ED said the investigation into the alleged diversion of bank loans, embezzlement of funds, and concealment of proceeds of crime is still underway.
The agency stated that the investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation (CBI), Banking Securities and Fraud Branch (BS&FB), Bengaluru. The scheduled offences include criminal conspiracy, cheating, forgery, use of forged documents, and criminal misconduct, which allegedly caused substantial losses to a consortium of banks.
According to the ED, the investigation revealed that Deepak Cable (India) Ltd., its Managing Director K. Venkateshwara Rao, Director Satyavathy Ball, and other associated entities allegedly obtained multiple credit facilities from consortium banks by submitting manipulated financial statements, inflated stock statements, and false debtor information. The agency alleged that the company misrepresented its financial position to fraudulently secure bank loans worth several crores.
The ED further alleged that, after obtaining the loans, the funds were diverted through a network of related companies instead of being used for their sanctioned business purposes. The entities under investigation include Surya Transmission Ltd., Adhunik Power Transmission Ltd., Dandeli Ferro Pvt. Ltd., Sharavathy Conductors Pvt. Ltd., Venkatesh Industries, Maruthi Engineering Works, Universal Transmission Line Products, KGN Electricals, and several other connected companies.
According to the agency, these entities were allegedly used to create fictitious sale and purchase transactions without any actual movement of goods. Such transactions were allegedly designed to divert and siphon off bank loan funds. The ED also claimed that portions of the loan proceeds were used for purposes unrelated to the sanctioned objectives, including the buyback of equity shares from private equity investors and the acquisition of immovable assets through related entities.
Earlier in the investigation, the ED conducted searches under Section 17 of the PMLA at multiple premises linked to the accused and their associates. During the searches, officials seized several incriminating documents, digital devices, electronic records, and other evidence. The agency stated that the seized material has provided crucial leads regarding the movement of funds and the alleged money laundering operations.
The ED had arrested Managing Director K. Venkateshwara Rao on June 2, 2026, under Section 19 of the PMLA, following which he was remanded to ED custody. The agency has also recorded statements of several accused persons, bank officials, and witnesses under Section 50 of the PMLA as part of the ongoing investigation.
The investigation has further identified properties allegedly acquired directly from the proceeds of crime, along with equivalent-value assets held in the names of the accused, their family members, and associated entities. According to the ED, a substantial portion of the alleged proceeds of crime had been layered, diverted, or could not be directly traced. Consequently, equivalent-value properties were also provisionally attached under the PMLA to safeguard the alleged proceeds of crime and ensure that future confiscation proceedings are not frustrated.
The ED said the objective of the attachment is to preserve assets allegedly linked to the proceeds of crime, prevent their transfer or disposal, and secure them for judicial proceedings. The agency added that the investigation into financial transactions, the role of associated companies, and the involvement of other beneficiaries is continuing. It noted that further attachments, arrests, or additional legal action may follow if new evidence emerges during the course of the investigation.
