HYDERABAD — The Enforcement Directorate has conducted search operations across seven locations in Hyderabad, Secunderabad, and Telangana’s Medchal-Malkajgiri district in connection with an alleged bank fraud amounting to ₹326.49 crore. The enforcement action targeted Kanakadhara Ventures Private Limited, its directors, and several affiliated entities suspected of involvement in the diversion of loan funds. During the coordinated searches, agency officials recovered ₹15 lakh in unaccounted cash and seized a substantial volume of documents, financial records, and digital storage devices linked to the suspected irregularities. The operation was carried out under the provisions of the Prevention of Money Laundering Act, covering the company’s registered corporate office, the residential premises of its directors, and premises linked to intermediaries suspected of facilitating fund transfers.
Probe Stemmed From CBI Case on Punjab National Bank Complaint
The money laundering investigation originated from a First Information Report registered on December 8, 2022, by the Central Bureau of Investigation’s Bank Securities and Fraud Branch in Bengaluru. That initial case was initiated following a formal complaint lodged by Punjab National Bank. The First Information Report invoked Sections 120-B, 420, 468, and 471 of the Indian Penal Code, covering criminal conspiracy, cheating, forgery, and the use of forged documents, alongside relevant provisions under Section 13 of the Prevention of Corruption Act.
The enforcement agency is examining whether credit facilities extended to the company were diverted through multiple conduit entities to evade regulatory scrutiny. The alleged default involves a five-bank lending consortium led by Punjab National Bank, which suffered an estimated collective loss of ₹326.49 crore. Other participating lenders in the consortium included IDBI Bank, Union Bank of India, Bank of Baroda, and Andhra Bank, which has since merged with Union Bank of India.
Fabricated Invoices and Undisclosed Accounts Under Scrutiny
According to the agency’s initial findings, bank guarantee and letter of credit facilities sanctioned to Kanakadhara Ventures were allegedly misused to shift money away from their approved business purposes. Investigators stated that the funds were systematically moved through connected and conduit firms using fabricated invoices for steel purchases as well as false transport documentation. These records were purportedly created to present the underlying financial movements as legitimate commercial transactions.
The investigation also revealed that the firm maintained and operated bank accounts outside the consortium arrangement without the approval or knowledge of the member lenders. Officials suspect these unapproved accounts were utilized to divert capital and obscure the transaction trail. The confiscated electronic devices and physical records are undergoing forensic evaluation to trace the final beneficiaries of the routed funds.
Multiple Immovable Properties Identified as Investigation Proceeds
In addition to the seizure of unaccounted cash and corporate records, the Enforcement Directorate has identified multiple immovable properties and financial investments linked to the directors and associated entities. Officials are reviewing the source of funds utilized to acquire these assets to establish whether they represent the proceeds of crime derived from the bank loan diversion.
The agency has not indicated whether any of the identified properties have been placed under provisional attachment. No arrests were announced following the searches, and investigators are continuing to evaluate the evidentiary material to delineate individual responsibilities and determine further statutory proceedings.
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