Bengaluru: The Enforcement Directorate (ED) has taken action in a case involving allegations of obtaining bank loans using forged documents and allegedly increasing the proceeds of crime through investments.
The agency’s Bengaluru office issued a provisional attachment order on September 1, 2026, under the Prevention of Money Laundering Act (PMLA) against M/s Akshatha Minerals Pvt. Ltd. and others, attaching assets worth around ₹3.31 crore. The attached assets include 62,914.316 units of HDFC Balanced Advantage Fund.
According to the ED, the action is part of a money laundering investigation initiated on the basis of an FIR registered by the Central Bureau of Investigation’s (CBI) Anti-Corruption Branch in Bengaluru. The FIR names Akshatha Minerals, its directors and others in connection with allegations of cheating, criminal conspiracy and the use of forged documents.
Loan Obtained by Mortgaging Six Properties
According to the investigation, Akshatha Minerals, a company engaged in the trading and export of iron ore, had obtained credit facilities of around ₹6 crore from Bank of India. Six properties were offered to the bank as equitable mortgage security for the loan facilities.
The ED has alleged that the ownership of one property located in Bengaluru’s Jayamahal area was falsely represented before the bank. Investigators found that the property was allegedly shown as being owned by late Lakshmamma, while forged Khata records, tax-paid receipts, betterment charge receipts and other revenue documents were allegedly submitted to support the claim.
Based on these documents, the bank disbursed a loan of around ₹3 crore against the property. The ED is examining the circumstances surrounding the loan and the role of various individuals allegedly involved in obtaining the funds and their subsequent movement.
₹1 Crore Transferred to Trust Account
According to the ED, the investigation uncovered a key financial trail. On February 13, 2010, ₹1 crore was transferred from Akshatha Minerals’ bank account to the account of Catholic Diocese of Bellary Trust. The agency has treated the amount as part of the alleged proceeds of crime.
The investigation found that the money was subsequently not simply spent but moved through a series of investment transactions. The amount was invested and reinvested through various HDFC Mutual Fund schemes. The ED said it was able to trace the original ₹1 crore through the successive investment transactions.
Investment Value Rose to ₹3.31 Crore
The ED said its investigation established that the alleged proceeds of crime remained identifiable even after being invested and were ultimately represented by 62,914.316 units of HDFC Balanced Advantage Fund.
As of September 1, 2026, the market value of these units was approximately ₹3.31 crore. According to the agency, the original amount of around ₹1 crore increased to approximately ₹3.31 crore due to investments and subsequent appreciation in value.
The ED has treated the increase in value as benefits and accretions arising from the alleged proceeds of crime and has therefore included the investment units in the attachment proceedings under the PMLA.
Prosecution Complaint Filed in March
The ED said it had already filed a prosecution complaint before the Special Court in Bengaluru on March 28, 2026, in connection with the case. The agency said further investigation is continuing.
The attachment under the PMLA is part of the ongoing legal proceedings, and the allegations will be subject to examination through the judicial process. The ED’s investigation is focused on establishing the financial trail connecting the alleged bank fraud, the transfer of the funds and their subsequent investment and appreciation in value.
