The Enforcement Directorate (ED) confiscated jewelry and cash totaling Rs 1.27 crore and froze bank accounts holding Rs 18 crore following searches at Deepak Cables’ premises. The ED, Bengaluru Zonal Office, carried out the searches under the PMLA, 2002, at locations linked to Deepak Cables on May 21 and May 29.
Various incriminating documents related to Deepak Cables (India) Limited, its Director K. Venkateswara Rao, and others were seized during the operations. The ED’s actions stemmed from an FIR filed by the CBI against Deepak Cables and others for allegedly defrauding a consortium of banks, including SBI, of Rs 899.35 crore.
Initiating an investigation based on the CBI’s complaint, the ED revealed that the company and the accused misled the bank by misusing credit facilities and diverting loan funds. They allegedly presented falsified financial statements and manipulated accounts to secure and continue obtaining bank loans.
The ED’s probe exposed the use of multiple entities for fictitious transactions, circular trading, and issuance of fake guarantees to inflate turnover and divert funds. It was discovered that substantial loan amounts were redirected to entities controlled by Rao without valid business reasons, concealing the illicit source of the funds.
