The Directorate of Enforcement (ED), Hyderabad Zonal Office, conducted search operations on 23 October 2026 at 7 premises in Hyderabad, Secunderabad and Medchal-Malkajgiri in Telangana. The searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002, as stated in a press release dated 24 October 2026.
The premises searched include the registered office of M/s Kanakadhara Ventures Pvt. Ltd. (KVPL) and the residences of its directors. ED also searched the premises of entities and persons who allegedly acted as conduits for the diversion of bank funds.
The searches relate to an ongoing investigation into the alleged diversion of credit facilities by KVPL and its directors. The case is based on FIR No. RC0782022E0005 dated 08.12.2022, registered by the Central Bureau of Investigation (CBI), BS&FB, Bangalore, on a complaint from Punjab National Bank. The FIR alleges offences under Sections 120-B, 420, 468 and 471 of the Indian Penal Code, 1860, and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988.
The case concerns the alleged defrauding of a consortium of banks led by Punjab National Bank. The consortium also includes IDBI Bank, Union Bank of India, Andhra Bank (now UBI) and Bank of Baroda. The alleged fraud caused a loss of Rs. 326.49 crore.
ED stated its findings from the investigation:
- The Bank Guarantee and Letter of Credit facilities sanctioned to KVPL were misutilised.
- Funds were diverted through related and conduit entities, including on the basis of fabricated steel purchase invoices and transport documents.
- KVPL also operated bank accounts outside the consortium arrangement without the knowledge of the lending banks.
During the searches, ED found and seized incriminating documents, digital devices and other records relating to the diversion and layering of funds. It also seized unaccounted cash of Rs. 15 lakh. Multiple immovable properties and investments have been identified. The press release states that further investigation is under progress.
