The Enforcement Directorate (ED) has filed a prosecution complaint against 11 accused, including Deepak Cables (India) Limited (DCIL) and its former executives, in connection with an alleged ₹899 crore bank fraud and money laundering case. The complaint, filed before a special court, follows an investigation that allegedly uncovered a conspiracy involving fraudulent financial disclosures, diversion of bank funds and laundering of proceeds of crime. The action marks another significant step in the agency’s ongoing crackdown on large-scale financial frauds involving public sector banks.
The prosecution complaint was submitted by the ED’s Bengaluru Zonal Office on July 31, 2026, before the Principal City Civil and Sessions Court in Bengaluru. According to the agency, the company’s former management allegedly secured enhanced credit facilities and loans from a consortium of banks by deliberately overstating the company’s financial strength. Investigators claim that financial statements and business records were manipulated to present a healthier financial position than actually existed, enabling the company to obtain credit far beyond its legitimate eligibility.
The ED initiated its investigation on the basis of a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI). According to the complaint lodged by the State Bank of India (SBI), the company and its former officials allegedly caused a loss of approximately ₹899.35 crore, including principal outstanding, accrued interest and legal expenses. In a parallel complaint, the Punjab National Bank (PNB) alleged an additional loss of around ₹147.93 crore of public funds. Both complaints were incorporated into the ED’s money laundering investigation under the Prevention of Money Laundering Act (PMLA).
Investigators found that DCIL was engaged in the manufacture of aluminium conductors and operated in the power transmission sector. The ED alleged that the company executed fictitious purchase and sale transactions with related and associated entities to artificially inflate its turnover and financial performance. According to the investigation, several commercial transactions reflected in company records were unsupported by any actual movement or delivery of goods. The agency believes these alleged sham transactions were used to create a misleading financial profile, enabling the company to obtain larger banking facilities and additional credit from lenders.
According to the ED, funds generated through these alleged fraudulent transactions were subsequently routed through multiple bank accounts before being diverted for purposes unrelated to the sanctioned loans. Investigators alleged that substantial amounts were transferred to the personal accounts of promoters and directors, routed to related companies and utilised for the acquisition of immovable properties. The agency further claimed that part of the diverted funds was used to buy back shares held by private equity investors, allegedly to disguise the origin and end use of the proceeds.
As part of the investigation, the ED issued a Provisional Attachment Order on July 30, 2026, attaching assets valued at approximately ₹51.28 crore under the provisions of the Prevention of Money Laundering Act (PMLA). The attached assets include multiple immovable properties allegedly linked to the accused. However, the attachment remains provisional and is subject to confirmation by the PMLA Adjudicating Authority in New Delhi, where the matter is currently under consideration.
Earlier, the ED arrested the company’s former Managing Director, K. Venkateswara Rao, on June 2, 2026, under the provisions of the PMLA. He continues to remain in judicial custody. The agency stated that the investigation is still underway and is focused on tracing additional financial transactions, identifying other beneficiaries and examining the role of related entities in the alleged laundering of bank funds. It added that further legal action may follow if additional evidence or fresh facts emerge during the ongoing investigation.
