ED attaches ₹51.28 crore assets in Deepak Cable bank fraud case
Synopsis
The ED has provisionally attached ₹51.28 crore worth of immovable properties in the Deepak Cable India bank fraud case — assets with a current market value exceeding ₹150 crore. The case alleges a sophisticated loan-diversion network involving fictitious transactions, manipulated financials, and at least nine connected entities, with the company's Managing Director already in custody since June 2026.
Key Takeaways
The ED , Bengaluru Zonal Office, provisionally attached properties worth ₹51.28 crore linked to M/s Deepak Cable (India) Ltd (DCIL) on 6 August .
The attached properties carry a current market value of over ₹150 crore , according to the ED.
The action is under the Prevention of Money Laundering Act (PMLA), 2002 , based on a CBI FIR from Bengaluru's Banking Securities and Fraud Branch.
Managing Director K.
Venkateshwara Rao was arrested on 2 June 2026 and remanded to ED custody.
Loan funds were allegedly diverted through at least nine related entities via fictitious transactions with no actual movement of goods.
The investigation is continuing, with equivalent-value properties also attached where direct proceeds could not be traced.
The Enforcement Directorate (ED), Bengaluru Zonal Office, has provisionally attached immovable properties worth approximately ₹51.28 crore in connection with an alleged bank fraud and money laundering case involving M/s Deepak Cable (India) Ltd (DCIL), its promoters, and associated entities. The attachment, carried out under the Prevention of Money Laundering Act (PMLA), 2002, covers properties whose current market value is estimated at over ₹150 crore, according to an ED statement issued on Thursday, 6 August.
Background and CBI Link
The ED investigation stems from an FIR registered by the Central Bureau of Investigation (CBI), Banking Securities and Fraud Branch (BS&FB), Bengaluru. The scheduled offences listed include criminal conspiracy, cheating, forgery, use of forged documents, and criminal misconduct — all allegedly resulting in wrongful losses to a consortium of banks.
How the Fraud Was Allegedly Carried Out
According to the ED, Deepak Cable (India) Ltd, along with its Managing Director K. Venkateshwara Rao, Director Satyavathy Ball, and other associated entities, allegedly obtained multiple credit facilities from consortium banks by submitting manipulated financial statements, inflated stock statements, and false debtor statements.
The agency further alleged that loan funds were diverted and siphoned off through a network of related companies, including Surya Transmission Ltd, Adhunik Power Transmission Ltd, Dandeli Ferro Pvt Ltd, Sharavathy Conductors Pvt Ltd, Venkatesh Industries, Maruthi Engineering Works, Universal Transmission Line Products, KGN Electricals, and other connected entities. The diversion was allegedly executed through fictitious sale and purchase transactions with no actual movement of goods.
Loan proceeds were also reportedly used for purposes outside the sanctioned objectives — including the buy-back of equity shares from private equity investors via related entities and the acquisition of assets, according to the ED.
Searches, Arrest and Statements
Earlier in the probe, the ED conducted searches under Section 17 of the PMLA at multiple premises linked to the accused and their associates, seizing incriminating documents, digital devices, and other records. Managing Director K. Venkateshwara Rao was arrested under Section 19 of the PMLA on 2 June 2026 and subsequently remanded to ED custody. Statements of several accused persons, bank officials, and witnesses were also recorded under Section 50 of the PMLA.
Why Equivalent-Value Properties Were Attached
The ED noted that a substantial portion of the alleged proceeds of crime had been layered, diverted, or could not be directly traced. As a result, equivalent-value properties held in the names of the accused, their family members, and connected entities were also provisionally attached to safeguard the proceeds of crime and prevent the frustration of confiscation proceedings under the PMLA.
The investigation remains ongoing, and further action is expected as the agency continues to trace assets linked to the alleged fraud.
Point of View
A web of related entities in the middle, and fictitious transactions to obscure the trail. What stands out is the gap between the attached value (₹51.28 crore) and the estimated market value of those same properties (₹150 crore), which signals how significantly asset values can diverge from book figures in such cases. The use of equity buy-backs as a diversion channel — rather than straightforward cash withdrawal — points to a degree of financial sophistication that routine bank audits are not always equipped to catch. The broader question this case raises is systemic: how did a consortium of banks extend credit against inflated stock and false debtor statements without triggering early alerts?
NationPress
6 Aug 2026
Frequently Asked Questions
What is the Deepak Cable India bank fraud case?
The case involves allegations that M/s Deepak Cable (India) Ltd (DCIL) and its promoters fraudulently obtained credit facilities from a consortium of banks by submitting manipulated financial statements, inflated stock figures, and false debtor records. Loan proceeds were allegedly diverted through a network of related companies via fictitious transactions.
How much has the ED attached in this case?
The ED has provisionally attached immovable properties worth approximately ₹51.28 crore . The current market value of the attached properties is estimated at over ₹150 crore , according to the agency.
Who has been arrested in the Deepak Cable fraud case?
Managing Director K. Venkateshwara Rao was arrested by the ED under Section 19 of the PMLA on 2 June 2026 and remanded to ED custody. Director Satyavathy Ball and other associated persons have also been named in the investigation.
Under which law has the ED taken action?
The attachment has been carried out under the Prevention of Money Laundering Act (PMLA), 2002 . The underlying investigation is based on an FIR by the CBI 's Banking Securities and Fraud Branch in Bengaluru.
Why were equivalent-value properties also attached?
The ED stated that a substantial portion of the alleged proceeds of crime had been layered or diverted and could not be directly traced. To prevent the frustration of confiscation proceedings, equivalent-value properties held in the names of the accused, their family members, and connected entities were also provisionally attached under the PMLA.
