Bengaluru: ED Files Prosecution Complaint Against Deepak Cables, Former MD in Money Laundering Case
Bengaluru, Aug 8 (TNT): The Enforcement Directorate (ED), Bengaluru Zonal Office, has filed a Prosecution Complaint before the Principal City Civil and Sessions Judge, Bengaluru, against M/s Deepak Cables (India) Ltd (DCIL), its former Managing Director K Venkateshwara Rao and others in a money laundering case, the agency said on Friday.
The complaint was filed on July 31, 2026, in connection with alleged financial irregularities involving bank funds, the agency said in a release.
The ED said the accused had allegedly generated and dealt with proceeds of crime arising from scheduled offences and were involved in activities connected with possession, acquisition and projection of such proceeds as untainted property.
The ED investigation was initiated on the basis of an FIR registered by the CBI, BS & FB, Bengaluru, following a complaint by the Deputy General Manager of the State Bank of India (SBI), SAMB, Bengaluru.
According to the agency, the SBI complaint alleged that DCIL, along with K Venkateshwara Rao and other directors, caused a wrongful loss of Rs 899.35 crore to the bank, including notional interest and legal expenses.
The agency said the Punjab National Bank (PNB) had also lodged a complaint with the CBI, which registered an FIR dated December 14, 2022, against DCIL and its promoters over alleged siphoning and diversion of funds, criminal misappropriation, criminal breach of trust and cheating.
The alleged offences resulted in a wrongful loss of Rs 147.93 crore to PNB, according to the ED.
The ED investigation found that DCIL, engaged in the manufacture of aluminium conductors and transmission and distribution of power, had allegedly obtained and enhanced credit facilities from a consortium of banks by submitting inflated records and financial statements, the agency said.
It further alleged that the company entered into fictitious sale and purchase transactions with related and unrelated entities, including M/s Surya Transmission Ltd, M/s Adhunik Power Transmission Ltd, M/s Amrutha Constructions Pvt Ltd, M/s KGN Electricals and M/s Sharavathy Conductors Pvt Ltd, without corresponding movement of goods.
The alleged proceeds of crime were diverted into the personal accounts of promoters and directors and into accounts of related companies, the ED said. The funds were allegedly used to purchase immovable properties and for the buy-back of equity shares held by private equity investors IDFC Limited and Ascent India Funds.
During the investigation, K Venkateshwara Rao was arrested on June 2, 2026 under provisions of the Prevention of Money Laundering Act (PMLA), 2002, and is presently in judicial custody, the agency said.
The ED has also provisionally attached immovable properties worth approximately Rs 51.28 crore held in the names of the accused persons through a Provisional Attachment Order dated July 30, 2026.
The provisional attachment order is pending confirmation before the Adjudicating Authority under the PMLA, New Delhi, the agency said.
Further investigation is under progress, according to the ED.
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