New Delhi/Hyderabad: The Enforcement Directorate (ED) on Friday conducted searches at seven premises across Telangana in the case of Kanakadhara Ventures Pvt Ltd (KVPL) and its directors, over the alleged diversion of credit facilities worth Rs 326.49 crore — yaani about Rs 326 crore — extended by a consortium of banks led by Punjab National Bank, ANI reported.
Source: ANI via Latestly — ED raids seven places in Telangana in Rs 326.49 crore bank fraud case
The ED's Hyderabad Zonal Office carried out the searches in Hyderabad, Secunderabad and Medchal-Malkajgiri under the Prevention of Money Laundering Act (PMLA), 2002. The premises included the company's registered office, the residences of its directors and locations linked to entities and individuals suspected of facilitating the diversion of bank funds, Hyderabad Mail reported.
Source: Hyderabad Mail — ED searches Kanakadhara Ventures amid fraud investigation
According to the ED, its investigation has revealed — these are allegations under investigation, not court findings — that the Bank Guarantee and Letter of Credit facilities sanctioned to KVPL were misutilised, and that funds were diverted through related and conduit entities, including on the basis of fabricated steel purchase invoices and transport documents, ANI reported.
Source: ANI via Latestly — ED raids seven places in Telangana in Rs 326.49 crore bank fraud case
Officials said KVPL was also found to have operated bank accounts outside the consortium arrangement without the knowledge of the lending banks. The alleged diversion forms the basis of the ED's money-laundering investigation in the case, according to ANI.
Source: ANI via Latestly — ED raids seven places in Telangana in Rs 326.49 crore bank fraud case
The ED initiated its investigation on the basis of FIR No. RC0782022E0005, dated December 8, 2022, registered by the CBI's Banking, Securities and Fraud Branch in Bengaluru following a complaint by Punjab National Bank. The FIR alleges offences under Sections 120-B, 420, 468 and 471 of the Indian Penal Code and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988, against KVPL, its directors and others, Hyderabad Mail reported.
Source: Hyderabad Mail — ED searches Kanakadhara Ventures amid fraud investigation