ED Attaches ₹150-Crore Assets in SBI Loan Fraud Case Against Deepak Cables

Bengaluru: The Enforcement Directorate (ED) has attached immovable properties worth around ₹150 crore in connection with an alleged ₹899.35-crore bank fraud and money laundering case involving Deepak Cables Ltd. and a consortium of banks led by the State Bank of India (SBI).

According to the ED, the attached assets belong to Deepak Cables Ltd. Managing Director K. Venkateswara Rao, Director Satyavathi Bal, and several associate entities linked to the company. The action has been taken under the provisions of the Prevention of Money Laundering Act (PMLA).

The agency is investigating allegations that the company obtained substantial loans from the SBI-led banking consortium and subsequently diverted and misused the funds instead of utilising them for the sanctioned business purposes.

Earlier in May this year, ED officials had conducted searches at multiple premises linked to Deepak Cables as part of the investigation. During the raids, investigators seized documents and assets believed to be connected to the alleged financial irregularities. The agency had also arrested Managing Director K. Venkateswara Rao during the course of the probe.

The latest attachment is part of the ongoing money laundering investigation aimed at securing assets suspected to have been acquired using proceeds of crime. The ED is continuing its probe to trace additional assets and establish the alleged diversion of bank funds.

The case is based on allegations of large-scale financial fraud involving bank loans and their subsequent diversion, causing significant losses to the lending institutions.