The Enforcement Directorate’s Bengaluru Zonal Office has detained Karuturi Venkateshwara Rao under the Prevention of Money Laundering Act. This action is part of an investigation involving Deepak Cables (India) Limited and others accused of defrauding a bank consortium led by the State Bank of India. The case revolves around alleged financial misconduct amounting to Rs 899.35 crore.
The ED’s probe, triggered by a CBI FIR against Deepak Cables India Ltd., revealed a scheme where falsified financial data and fictitious transactions were used to secure and misuse substantial bank loans. The accused reportedly engaged in circular trading and issued fake guarantees to inflate turnover and divert funds. These illicit activities aimed to conceal the illegal sources of money.
Further investigations unveiled that a significant portion of the loan funds was channeled to entities controlled by Karuturi Venkateshwara Rao without valid business reasons. The ED asserts that the evidence gathered points to Rao’s involvement in money laundering, as per the PMLA, 2002. Following his arrest, Rao faced a Special Court in Bengaluru, which granted the ED 10 days for interrogation.
Previous searches in the case resulted in the seizure of gold jewelry and cash valued at Rs 1.27 crore, alongside the freezing of bank accounts holding around Rs 18 crore. The investigation remains ongoing to uncover more details.
