The Enforcement Directorate (ED) Bengaluru Zonal Office has filed a chargesheet before a Bengaluru court in an alleged bank fraud and money laundering case involving more than ₹1,047 crore, naming 11 accused including Deepak Cable (India) Limited (DCIL) and its former top executives. The chargesheet was filed on 31 July before the Bengaluru Principal City Civil and Sessions Judge, according to an official statement released on 7 August.

Who Has Been Charged

The 11 accused named in the chargesheet include Deepak Cable (India) Limited, its former Managing Director K. Venkateshwara Rao, former Director Satyavathy Balla, Surya Transmission Limited, Adhunik Power Transmission Limited, Amrutha Constructions Private Limited (ACPL) and its Managing Director P. Venkateshwara Rao, KGN Electricals and its partner Mohamed Idress, Sharavathy Conductors Private Limited (SCPL), and its Managing Director Kaardam Patel.

The accused are alleged to have committed offences under the Prevention of Money Laundering Act (PMLA), 2002 by acquiring, possessing, and projecting tainted assets as legitimate property.

How the Fraud Was Allegedly Carried Out

DCIL, engaged in manufacturing aluminium conductors and power transmission equipment, allegedly secured enhanced credit facilities from a consortium of banks by submitting inflated financial records. The company is further alleged to have conducted fictitious sale and purchase transactions with related entities — including Surya Transmission Limited and Adhunik Power Transmission Limited — as well as unrelated firms such as ACPL, KGN Electricals, and SCPL, without any actual movement of goods.

According to the ED's investigation, proceeds of crime were diverted to the personal accounts of promoters and directors, transferred to associated companies, and used to purchase immovable properties and buy back equity shares held by private equity investors — IDFC Limited and Ascent India Funds.

Origins of the Investigation

The case originates from an FIR registered by the Central Bureau of Investigation (CBI) on the basis of a complaint by the State Bank of India (SBI), which alleged that DCIL and its promoters caused a wrongful loss of ₹899.35 crore — including notional interest and legal expenses — to the bank. Subsequently, Punjab National Bank (PNB) also lodged a complaint with the CBI alleging fraud involving ₹147.93 crore, leading to a separate FIR that was later incorporated into the ED's money laundering probe.

Arrests and Asset Attachments

Former Managing Director K. Venkateshwara Rao was arrested on 2 June 2026 under the PMLA and is currently in judicial custody. The ED has also provisionally attached immovable properties worth approximately ₹51.28 crore, alleged to represent proceeds of crime. The attachment order, issued on 30 July, is awaiting confirmation before the Adjudicating Authority under the PMLA in New Delhi.

What Comes Next

The ED has stated that further investigation into the case remains ongoing. The confirmation of the attachment order by the Adjudicating Authority will be a key procedural milestone, as will the court's response to the chargesheet. This case is part of a broader pattern of ED action against companies alleged to have siphoned public-sector bank funds through inflated books and shell transactions — a category of fraud that has cost Indian banks hundreds of thousands of crores over the past decade.