The Enforcement Directorate (ED) has provisionally attached movable assets worth approximately ₹3.31 crore — comprising 62,914.316 units of the HDFC Balanced Advantage Fund — in connection with a money laundering investigation involving Akshatha Minerals Pvt Ltd and associated individuals, the agency confirmed on Tuesday, 1 September 2026. The attachment order was issued by the ED's Bengaluru Zonal Office under Section 5(1) of the Prevention of Money Laundering Act (PMLA), 2002.

Background and CBI-ACB Case

The ED's investigation was triggered by an FIR registered by the Central Bureau of Investigation's Anti-Corruption Bureau (CBI-ACB), Bengaluru, against Akshatha Minerals Pvt Ltd, its directors, and others on charges of alleged cheating, criminal conspiracy, and use of forged documents. The company was engaged in the trading and export of iron ore and had reportedly availed credit facilities of around ₹6 crore from the Bank of India by creating an equitable mortgage over six properties.

One of those properties, located in Jayamahal, Bengaluru, was allegedly misrepresented as being owned by the late Lakshmamma. According to the ED, forged and fabricated Khata records, tax-paid receipts, betterment charge receipts, and other revenue documents were submitted to the bank to secure the mortgage. The Bank of India subsequently disbursed ₹3 crore against the said property.

How the Money Was Laundered

Investigators found that ₹1 crore — identified as alleged proceeds of crime — was transferred from the bank account of Akshatha Minerals to the Catholic Diocese of Bellary Trust on 13 February 2010. The funds were subsequently invested and reinvested across multiple HDFC Mutual Fund schemes over the years.

The ED said its money trail established that the original allegedly tainted amount remained identifiable through successive investments and was ultimately represented by the 62,914.316 units of the HDFC Balanced Advantage Fund now under attachment. The value of these units had appreciated from the original ₹1 crore to approximately ₹3.31 crore — a sum the agency described as the 'fruits or accretions' of the alleged proceeds of crime.

Legal Proceedings So Far

The ED had earlier filed a prosecution complaint before the Special Court in Bengaluru on 28 March 2026, marking a significant procedural milestone in the case. The provisional attachment issued on 1 September 2026 is the latest enforcement action. Under the PMLA framework, a provisional attachment must be confirmed by the Adjudicating Authority within a stipulated period for it to hold.

Notably, this case illustrates a pattern the ED has increasingly pursued — tracing the layering of proceeds of crime through institutional investment vehicles such as mutual funds, where appreciation of tainted funds is itself treated as laundered money.

What Happens Next

The ED said further investigation in the case is underway. The attached mutual fund units will remain frozen pending adjudication. If the Adjudicating Authority confirms the attachment, the assets could eventually be forfeited to the government upon conviction. The case is being closely watched as an example of the agency's ability to trace multi-decade money trails through the financial system.