ED raids 7 Hyderabad premises in ₹326 crore bank fraud probe
Synopsis
The ED raided seven premises in Hyderabad, Secunderabad, and Medchal-Malkajgiri as part of a ₹326.49 crore bank fraud probe targeting Kanakadhara Ventures Pvt. Ltd. Fabricated steel invoices, forged transport documents, and secret bank accounts outside a PNB-led consortium are at the heart of the alleged scheme — with ₹15 lakh in unaccounted cash already recovered and multiple properties identified for potential attachment.
Key Takeaways
ED Hyderabad raided seven premises on 24 October 2025 under the PMLA in connection with a ₹326.49 crore bank fraud case.
Searches targeted M/s Kanakadhara Ventures Pvt.
Ltd. (KVPL) , its directors, and alleged conduit entities in Hyderabad , Secunderabad , and Medchal-Malkajgiri .
A consortium led by Punjab National Bank — including IDBI Bank , Union Bank of India , and Bank of Baroda — allegedly suffered the losses.
Funds were allegedly diverted using fabricated steel purchase invoices and forged transport documents through conduit entities.
Unaccounted cash of ₹15 lakh was recovered; digital devices , documents, and financial records were also seized.
The case originated from a CBI FIR dated 8 December 2022 ; further investigation and likely attachment of identified properties is underway.
The Directorate of Enforcement (ED), Hyderabad Zonal Office, on Friday, 24 October 2025, conducted search operations at seven premises across Hyderabad, Secunderabad, and Medchal-Malkajgiri in Telangana under the Prevention of Money Laundering Act (PMLA). The raids targeted M/s Kanakadhara Ventures Pvt. Ltd. (KVPL), its directors' residences, and locations linked to alleged conduit entities involved in the diversion of bank funds worth ₹326.49 crore.
Background and Case Origin
The ED action traces back to an FIR dated 8 December 2022, registered by the Central Bureau of Investigation (CBI), Bank Securities and Fraud Branch (BS&FB), Bengaluru, on a complaint filed by Punjab National Bank (PNB). The FIR invokes Sections 120-B, 420, 468, and 471 of the Indian Penal Code, along with provisions of the Prevention of Corruption Act, 1988.
A consortium of lenders — led by Punjab National Bank and comprising IDBI Bank, Union Bank of India, Andhra Bank (now merged with Union Bank of India), and Bank of Baroda — allegedly suffered a combined loss of ₹326.49 crore, according to the agency.
How the Fraud Was Allegedly Carried Out
ED investigators allege that Bank Guarantee and Letter of Credit facilities sanctioned to KVPL were systematically misused. Funds were reportedly routed through related and conduit entities using fabricated steel purchase invoices and forged transport documents, a classic layering technique used to obscure the money trail.
The company is further accused of operating bank accounts outside the consortium arrangement — without the knowledge or consent of the lending banks — enabling allegedly unauthorised fund movements. This comes amid a broader pattern of consortium-lending frauds that have cost Indian public-sector banks hundreds of thousands of crore over the past decade.
What Was Seized During the Raids
During the searches, ED officials recovered incriminating documents, digital devices, and financial records related to the alleged diversion and layering of funds. Unaccounted cash of ₹15 lakh was also seized from the searched premises. The agency said it has additionally identified multiple immovable properties and investments linked to the case, which are expected to be subjected to attachment proceedings.
Investigation Status and Wider Significance
The ED confirmed that further investigation is underway and flagged that the coordinated search operation reflects its continued focus on tracing proceeds of bank fraud and dismantling complex money-laundering networks involving corporate entities. Notably, this is part of a sustained enforcement push by the ED across Telangana, where several multi-crore financial fraud cases have been probed in recent years.
With immovable properties and investments already identified, formal attachment orders under the PMLA are likely to follow as the investigation progresses.
Point of View
Fabricated trade documents, and accounts operated in the shadows — that has recurred across dozens of public-sector bank fraud cases in India. What this action underscores is the slow pace of closure: the CBI FIR dates to December 2022, and ED searches are only now materialising nearly three years later. The ₹326 crore loss is borne primarily by state-owned banks, ultimately a public-sector liability. The real accountability question is not just criminal prosecution but whether the identified immovable properties will be attached, monetised, and the proceeds returned to the defrauded lenders — a step that has historically lagged years behind the raids that generate headlines.
NationPress
24 Oct 2026
Frequently Asked Questions
What is the ED's Hyderabad bank fraud case against Kanakadhara Ventures?
The ED is investigating M/s Kanakadhara Ventures Pvt. Ltd. (KVPL) for allegedly misusing Bank Guarantee and Letter of Credit facilities and diverting funds through conduit entities, causing a loss of ₹326.49 crore to a consortium of banks led by Punjab National Bank. The money-laundering probe stems from a CBI FIR registered on 8 December 2022 .
Which banks suffered losses in the Kanakadhara Ventures fraud?
A lending consortium comprising Punjab National Bank (PNB) , IDBI Bank , Union Bank of India , Andhra Bank (now merged with Union Bank of India), and Bank of Baroda collectively suffered losses of ₹326.49 crore , according to the ED.
What was recovered during the ED raids in Hyderabad?
During searches at seven premises, the ED seized incriminating documents , digital devices , and financial records. Unaccounted cash worth ₹15 lakh was also recovered. The agency has additionally identified multiple immovable properties and investments linked to the alleged fraud.
How was the bank fraud allegedly carried out by Kanakadhara Ventures?
According to the ED, funds from Bank Guarantee and Letter of Credit facilities were diverted through related and conduit entities using fabricated steel purchase invoices and forged transport documents. The company also allegedly operated bank accounts outside the consortium arrangement without the lenders' knowledge.
What happens next in the ED investigation?
The ED has stated that further investigation is ongoing. Given that multiple immovable properties and investments have already been identified, formal attachment orders under the PMLA are expected to follow. Any attached assets would be subject to adjudication proceedings before the Adjudicating Authority under PMLA .
