ED provisionally attaches assets worth ₹51.28 crore in Deepak Cable case

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Deepak Cable case: ED's action

Highlights

The Enforcement Directorate has provisionally attached assets worth ₹51.28 crore of Deepak Cable (India) Ltd. and related entities under the Prevention of Money Laundering Act, 2002.
The investigation found that the company obtained loans from banks using manipulated financial statements and fake documents, and diverted the funds to several associate companies.
ED alleged that proceeds of crime were used to purchase properties and invest in private equity, including share buybacks, leading to provisional attachment of assets.

This article was translated from the original. Read the original version by our correspondent here.

Basis of Attachment and Investigation

According to the Enforcement Directorate, this provisional attachment has been made under the Prevention of Money Laundering Act, 2002, and the total value of the attached properties is around ₹51.28 crore, while their market value is reported to be about ₹150 crore or more. The case pertains to M/s Deepak Cable (India) Ltd., its Managing Director K. Venkateshwara Rao, Director Smt. Satyavathy Ball, and related entities.

ED stated that the money laundering investigation was initiated based on an FIR registered by CBI, BS&FB, Bengaluru. The scheduled offences include criminal conspiracy, fraud, forgery, use of forged documents, and criminal misconduct, which allegedly caused losses to a consortium of banks.

The investigation found that the company and its promoters allegedly submitted manipulated financial statements, inflated stock details, and incorrect debtor information to obtain various loan facilities. According to ED, the loan amounts were then diverted through a network of related companies, including M/s Surya Transmission Ltd., M/s Adhunik Power Transmission Ltd., M/s Danddeli Ferro Pvt. Ltd., M/s Sharavathy Conductors Pvt. Ltd., M/s Venkatesh Industries, M/s Maruthi Engineering Works, M/s Universal Transmission Line Products, and M/s KGN Electricals.

Use of Loan Funds and Wider Impact of the Case

The agency alleges that fictitious sales and purchase transactions were created through these entities without actual movement of goods, leading to diversion and withdrawal of bank loan funds. ED also stated that the proceeds of the loans were used for purposes other than those approved, including buyback of equity shares from private equity investors and acquisition of properties through related entities.

Earlier, ED had conducted searches at several premises under Section 17 of PMLA, during which allegedly incriminating documents, digital devices, and records were seized. Subsequently, K. Venkateshwara Rao was arrested on 02.06.2026 under Section 19 of PMLA and remanded to ED custody.

The investigation also revealed that properties purchased directly from proceeds of crime, as well as properties of equivalent value, were identified in the names of the accused, their family members, and related entities. ED states that since a significant portion of the crime proceeds was layered, diverted, or could not be directly traced, properties of equivalent value have also been provisionally attached to prevent further proceedings of confiscation from failing.

Our previous report detailed the provisional attachment of 45 immovable properties in Delhi by ED under PMLA, 2002, during the investigation of the alleged collective investment scam linked to PACL. It was reported that, according to the agency, these properties were purchased from funds collected from investors, and so far, thousands of crores worth of movable and immovable assets of PACL and related entities have been attached in India and abroad.

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