ED raids premises of Bharath Infra Exports and Imports Ltd in Bengaluru and Davangere in bank fraud case
Bengaluru: An FIR registered by the Central Bureau of Investigation in Bengaluru forms the basis of an Enforcement Directorate probe into an alleged ₹326.49-crore bank fraud involving Kanakadhara Ventures Pvt. Ltd. (KVPL) and its directors. The ED searched seven premises in Telangana on October 23.
The Hyderabad Zonal Office carried out the searches under the Prevention of Money Laundering Act across Hyderabad, Secunderabad and Medchal-Malkajgiri. The premises included KVPL’s registered office, directors’ residences and properties of entities and people allegedly used as conduits to divert bank funds.
CBI Bengaluru FIR followed PNB complaint
The ED said the investigation was initiated on the basis of FIR No. RC0782022E0005, registered on December 8, 2022, by the CBI’s Banking Securities and Fraud Branch in Bengaluru on a complaint by Punjab National Bank.
The FIR alleges offences under Sections 120-B, 420, 468 and 471 of the Indian Penal Code and Section 13(2), read with Section 13(1)(d), of the Prevention of Corruption Act against KVPL, its directors and others, the agency said.
The case concerns an alleged loss of ₹326.49 crore to a consortium led by PNB, comprising IDBI Bank, Union Bank of India, Andhra Bank (now Union Bank of India) and Bank of Baroda.
₹15 lakh seized during searches
The ED alleged that bank-guarantee and letter-of-credit facilities sanctioned to KVPL were misused and funds diverted through related and conduit entities. It said this included fabricated steel-purchase invoices and transport documents. The company also allegedly operated bank accounts outside the consortium arrangement without the lending banks’ knowledge.
The agency said it seized incriminating documents, digital devices and records relating to the alleged diversion and layering of funds, along with ₹15 lakh in unaccounted cash. Multiple immovable properties and investments have also been identified. Further investigation is underway.
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