Delhi: Directorate of Enforcement (ED), Bengaluru Zonal Office, has filed a Prosecution Complaint (PC)
on 31/7/2026 before the Hon’ble Principal City Civil and Sessions Judge, Bengaluru against (i) M/s Deepak
Cable (India) Limited(M/s DCIL), (ii) K. Venkateshwara Rao, Ex-Managing Director, M/s DCIL (iii) Smt.
Satyavathy Balla, Ex-Director, M/s DCIL (iv) M/s Surya Transmission Ltd. (v) M/s Adhunik Power
Transmission Ltd. (vi) M/s Amrutha Constructions Pvt. Ltd.(ACPL) (vii) P. Venkateshwara Rao, MD, M/s
ACPL (viii) M/s KGN Electricals (ix) Mr. Mohamed Idress, Partner, M/s KGN Electricals (x) M/s Sharavathy
Conductors Pvt. Ltd.(SCPL) and (xi) Kaardam Patel, MD, M/s SCPL. The said accused persons, by
committing criminal activity relating to the scheduled offence had directly/indirectly involved in generation of
Proceeds of Crime (POC) and have directly/indirectly indulged in the process or activity connected with POC
including its possession, acquisition and projecting or claiming it as untainted property and are guilty of the
offence of money laundering.
ED initiated the money laundering investigation on the basis of FIR registered by CBI, BS & FB,
Bengaluru under various Sections of the Indian Penal Code (IPC), 1860 and the Prevention of Corruption
Act, 1988, on the basis of a written complaint filed by the Deputy General Manager, State Bank of India
(SBI), SAMB, Bengaluru, alleging that M/s DCIL, along with its Managing Director K. Venkateshwara Rao
and other Directors, had caused wrongful loss of Rs. 899.35 Crore (including notional interest and legal
expenses) to SBI.
Further, investigation revealed that PNB Bank also filed a complaint with CBI, BS & FB, Bengaluru
and accordingly, CBI, BS & FB registered an FIR dated 14.12.2022 against M/s DCIL & its promoters for
offence of fraud by siphoning and diversion of funds, criminal misappropriation, criminal breach of trust,
cheating, etc. causing wrongful gain to themselves and wrongful loss of public money to the complainant
bank to the tune of Rs.147.93 Crore. Accordingly, Addendum of the said FIR was made in the said ECIR.
Investigation by ED revealed that M/s DCIL, engaged in the manufacture of Aluminium conductors,
transmission/distribution of power, availed and enhanced credit facilities from the consortium of banks by
submitting inflated records/financials of the company. The company got engaged in fictitious sale/purchase
transactions with related entities including M/s Surya Transmission Ltd., M/s Adhunik Power Transmission
Ltd. and unrelated entities including M/s ACPL, M/s KGN Electricals and M/s SCPL., without any
corresponding movement of goods. The POC generated was diverted into the personal accounts of
promoters/directors, into the accounts of related companies and utilized for purchasing various immovable
properties, buy-back of equity shares held by private equity investors M/s IDFC Limited and M/s Ascent India
Funds.
During the course of investigation, K. Venkateshwara Rao was arrested on 02.06.2026 under the
provisions of PMLA, 2002 and is presently in judicial custody. POC amounting to Rs. 51.28 Crore (approx.)
comprising immovable properties held in the names of the accused persons, have been provisionally
attached by ED vide Provisional Attachment Order dated 30.07.2026. The said Provisional Attachment Order
is pending confirmation before the Hon’ble Adjudicating Authority (PMLA), New Delhi.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.