The ED, Bengaluru Zonal Office, has filed a Prosecution Complaint (PC) under the PMLA, 2002, on 31.07.2026 before the Hon’ble Principal City Civil and Sessions Judge, Bengaluru, in a case involving bank fraud, diversion of loan funds, and embezzlement, against: (i) M/s Deepak Cables (India) Limited (M/s DCIL), (ii) K. Venkateswara Rao, former Managing Director, M/s DCIL, (iii) Smt. Satyavathi Balla, former Director, M/s DCIL, (iv) M/s Surya Transmission Limited, (v) M/s Adhunik Power Transmission Limited, (vi) M/s Amrutha Constructions Private Limited (ACPL), (vii) P. Venkateswara Rao, Managing Director, M/s ACPL, (viii) M/s KGN Electricals, (ix) Mohammed Idris, Partner, M/s KGN Electricals, (x) M/s Sharavathi Conductors Private Limited (SCPL), and (xi) Kardam Patel, Managing Director, M/s SCPL.
The Enforcement Directorate (ED), Bengaluru Zonal Office has filed a Prosecution Complaint (PC) on 31.07.2026 before the Hon’ble Principal City Civil & Sessions Judge, Bengaluru against (i) M/s Deepak Cable (India) Limited (M/s DCIL), (ii) K. Venkateswara Rao, Ex-Managing Director, M/s DCIL, (iii) Smt. Satyavati Balla, Ex-Director, M/s DCIL, (iv) M/s Surya Transmission Limited, (v) M/s Adhunik Power Transmission Limited, (vi) M/s Amrita Constructions Private Limited (ACPL), (vii) P. Venkateswara Rao, Managing Director, M/s ACPL, (viii) M/s KGN Electricals, (ix) Shri Mohammed Idrees, Partner, M/s KGN Electricals, (x) M/s Sharavati Conductors Private Limited (SCPL) and (xi) Cardam Patel, Managing Director, M/s SCPL. The said accused persons were directly/indirectly involved in the generation of proceeds of crime (POC) by committing criminal activity relating to scheduled offence and were directly/indirectly involved in any process or activity relating to the proceeds of crime including possession, acquisition and presenting or claiming the same as clean property and are guilty of the offence of money laundering.
The ED initiated a money laundering investigation based on a written complaint filed by the Deputy General Manager, State Bank of India (SBI), SAMB, Bengaluru, and an FIR registered by the CBI, BS&FB, Bengaluru, under various sections of the Indian Penal Code (IPC), 1860 and the Prevention of Corruption Act, 1988. The complaint alleged that M/s DCIL, in connivance with its Managing Director K. Venkateswara Rao and other Directors, caused undue loss of Rs. 899.35 crore (including estimated interest and legal expenses) to SBI.
Further investigation revealed that PNB Bank also filed a complaint with the CBI, BS&FB, Bengaluru and accordingly, the CBI, BS&FB registered an FIR on 14.12.2022 against M/s DCIL and its promoters for the offences of embezzlement and diversion of funds, criminal misappropriation, criminal breach of trust, fraud, etc., resulting in undue gain to themselves and undue loss to the public money of the complainant bank to the tune of Rs. 147.93 crore. Accordingly, the said FIR was added to the said ECIR.
The ED investigation revealed that M/s DCIL, engaged in the manufacturing of aluminum conductors and power transmission/distribution, obtained and enhanced credit facilities from a consortium of banks by submitting inflated records/financial statements of the company. The company entered into fictitious sale/purchase transactions with affiliated entities such as M/s Surya Transmission Limited, M/s Adhunik Power Transmission Limited, and unrelated entities such as M/s ACPL, M/s KGN Electricals, and M/s SCPL, without any actual movement of goods. The proceeds of crime were transferred to the personal accounts of promoters/directors and the accounts of associated companies, and used for the purchase of various immovable properties and for the buy-back of equity shares held by private equity investors M/s IDFC Limited and M/s Ascent India Funds.
During the investigation, K. Venkateswara Rao was arrested on June 2, 2026, under the provisions of the PMLA, 2002, and is currently in judicial custody. Proceeds of crime amounting to approximately ₹51.28 crore, including immovable properties held in the names of the accused, have been provisionally attached by the ED through a provisional attachment order dated July 30, 2026. The said provisional attachment order is pending confirmation before the Hon’ble Adjudicating Authority (PMLA), New Delhi.
Further investigation is ongoing.
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.