Shell companies used to divert ₹136 crore; SBI suffered total loss of ₹189 crore.
The Enforcement Directorate’s Hyderabad zonal office has attached immovable assets worth ₹111.57 crore belonging to M/s Hackbridge Hewittic and Easun Ltd. The attachment, carried out on 11 November 2025, is part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002, linked to alleged bank fraud involving M/s Victory Electricals Ltd. (VEL).
ED Steps In After CBI FIR Based on SBI Complaint
The money laundering probe stems from an FIR filed by the CBI following a complaint from the State Bank of India. The case names VEL, Victory Transformers and Switchgears Ltd. (VTSL) and their directors — Mahindra Kumar Waddideni, Manoj Kumar Waddideni, and Venkatappa Naidu Waddideni.
The CBI filed a chargesheet in 2023 (CC No. 8743/2023) before the special court in Hyderabad. The investigation found that the directors obtained large credit facilities from SBI using forged financial documents, fabricated balance sheets, and inflated receivables.
Using these fraudulently sanctioned LCs and credit limits, the management allegedly diverted ₹136.50 crore of public funds through a systematic series of fraudulent transactions.
Delhi-Based Shell Network Used for Layering and Routing Funds
According to the ED, director Mahindra Kumar Waddideni, who exercised control over both VEL and VTSL, routed ₹88.93 crore through a network of Delhi-based shell companies managed by co-accused Naveen Khatri.
These entities were created solely for layering transactions, concealing fund sources, and presenting diverted money as legitimate business revenue. None of the companies had any real commercial activity.
After passing through multiple layers, the money was routed back into the accounts of VEL and VTSL, where it was shown as revenue from operations.
Loan Misuse: NPA Classification and Cash Withdrawals
The ED’s findings show that the accused parked ₹17.17 crore by selectively clearing certain payables, transferred ₹46.31 crore to group companies without genuine business transactions, and withdrew ₹15.65 crore in cash directly from loan accounts.
These actions were intended to remove the funds from the banking system and mask the fraud.
Foreign Bank Guarantee Added to SBI’s Losses
SBI informed investigators that in 2011, it issued a foreign bank guarantee of USD 5 million (approx. ₹45.10 crore) on behalf of VEL for transformer supplies.
When the company failed to supply the material, SBI had to honour the guarantee in 2021, making payment to Bank of Baroda, Sharjah (Dubai).
This was over and above the NPA-linked losses. According to ED’s assessment, SBI suffered a total loss of ₹189.04 crore, including interest. The bank has recovered only ₹77.47 crore; the remaining ₹111.57 crore is still outstanding.
With No Free Assets Available, ED Traces Ownership Link
Further investigation showed that neither the accused nor VEL/VTSL had any unencumbered assets left.
ED then traced a significant shareholding link: VEL holds 93.28% equity in M/s Hackbridge Hewittic and Easun Ltd., and the company’s board is controlled by the Waddideni directors.
Based on this control and beneficial ownership, the ED attached land parcels valued at ₹111.57 crore belonging to the company.
Investigation Continues
The agency has stated that the probe into additional assets, fund trails, and shell networks is ongoing. Further action will follow as new evidence emerges.
