ED Raids in Deepak Cables Bank Fraud Case; ₹1.27 Crore Cash and Gold Seized, ₹18 Crore Frozen
Bengaluru, June 1: The Directorate of Enforcement (ED), Bengaluru Zonal Office, has conducted extensive search operations in connection with an alleged bank fraud and money laundering case involving Deepak Cables (India) Limited (DCIL), resulting in the seizure of gold jewellery, cash and the freezing of multiple bank accounts.
According to an official statement issued by the ED, searches were carried out on May 21 and May 29, 2026, under provisions of the Prevention of Money Laundering Act (PMLA), 2002, at various premises linked to Deepak Cables (India) Limited, its directors and associated entities.
During the operation, ED officials seized incriminating documents belonging to Deepak Cables (India) Limited, its Director K. Venkateswara Rao, and other associated individuals and entities. The agency also seized gold jewellery and cash worth ₹1.27 crore and provisionally froze multiple bank accounts containing balances amounting to ₹18 crore under Section 17(1A) of the PMLA.
The money laundering investigation stems from a CBI FIR registered against Deepak Cables (India) Limited, Director K. Venkateswara Rao and others for allegedly cheating a consortium of banks led by the State Bank of India (SBI).
According to investigators, the company allegedly defrauded the banking consortium to the tune of ₹899.35 crore by obtaining large credit facilities and subsequently diverting loan funds.
The ED stated that the company is accused of submitting falsified financial statements and manipulating books of accounts to secure and continue availing bank loans from financial institutions.
The investigation has further revealed alleged use of multiple entities for fictitious sales and purchases, circular trading arrangements and issuance of fake corporate guarantees.
Officials said these transactions were allegedly designed to artificially inflate the company’s turnover, enhance drawing power from banks, evergreen existing loans and divert proceeds of crime through related companies and personal accounts to conceal their illicit origin.
According to the ED, substantial amounts of loan funds were allegedly diverted to related entities controlled by K. Venkateswara Rao without any legitimate business rationale.
The agency also suspects that funds were routed through interconnected companies and accounts as part of a larger scheme to disguise the movement and utilization of bank loans obtained through fraudulent means.
The searches led to the recovery of several documents and financial records that are expected to aid investigators in tracing the money trail and identifying additional beneficiaries of the alleged fraud.
Officials said the investigation is continuing and further action under the Prevention of Money Laundering Act will be taken based on the findings of the ongoing probe.
The case is one of the significant bank fraud investigations currently being pursued by central agencies and involves allegations of large-scale financial irregularities, loan diversion and money laundering amounting to hundreds of crores of rupees.
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