Bengaluru, Aug 7 (IANS) The Enforcement Directorate’s (ED) Bengaluru Zonal Office has filed a chargesheet before a Bengaluru court against Deepak Cable (India) Limited (DCIL), its former promoters and directors, and several associated companies in connection with an alleged bank fraud and money laundering case involving more than Rs 1,047 crore, the official statement said on Friday.
The chargesheet was filed on July 31 before the Bengaluru Principal City Civil and Sessions Judge, against 11 accused, including Deepak Cable (India) Limited, its former Managing Director K. Venkateshwara Rao, former Director Satyavathy Balla, Surya Transmission Limited, Adhunik Power Transmission Limited, Amrutha Constructions Private Limited (ACPL), its Managing Director P. Venkateshwara Rao, KGN Electricals and its partner Mohamed Idress, Sharavathy Conductors Private Limited (SCPL), and its Managing Director Kaardam Patel.
According to the ED, the accused generated and laundered proceeds of crime by acquiring, possessing and projecting tainted assets as legitimate property, thereby committing offences under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation stems from an FIR registered by the Central Bureau of Investigation on the basis of a complaint by the State Bank of India (SBI), which alleged that DCIL and its promoters caused a wrongful loss of Rs 899.35 crore, including notional interest and legal expenses, to the bank.
Subsequently, Punjab National Bank (PNB) also lodged a complaint with the CBI, alleging fraud involving Rs 147.93 crore, leading to the registration of another FIR that was later incorporated into the ED’s money laundering investigation.
The ED alleged that DCIL, engaged in manufacturing aluminium conductors and power transmission equipment, secured enhanced credit facilities from a consortium of banks by submitting inflated financial records.
The central probe agency claimed the company carried out fictitious sale and purchase transactions with related entities, including Surya Transmission Limited and Adhunik Power Transmission Limited, as well as unrelated firms such as ACPL, KGN Electricals and SCPL, without any actual movement of goods.
According to the investigation, the proceeds of crime were diverted to the personal accounts of the promoters and directors, transferred to related companies, and used to purchase immovable properties and buy back equity shares held by private equity investors — IDFC Limited and Ascent India Funds.
The ED arrested former Managing Director K. Venkateshwara Rao on June 2, 2026, under the provisions of the PMLA. He is currently in judicial custody.
The central agency has also provisionally attached immovable properties worth around Rs 51.28 crore, which it alleges represent proceeds of crime.
The attachment order, issued on July 30, is awaiting confirmation before the Adjudicating Authority under the PMLA in New Delhi.
The ED said that further investigation into the case is underway.
–IANS
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