The Enforcement Directorate (ED) has filed a formal prosecution complaint against 11 accused — including Deepak Cables (India) Limited (DCIL) and several of its former executives — in a major ₹899 crore bank fraud and money laundering case. The complaint, filed before a special court, follows an investigation that allegedly uncovered a well-planned conspiracy involving fake financial disclosures, diversion of bank funds, and laundering of the proceeds. This marks another significant step in the ED's ongoing crackdown on large-scale banking fraud involving public sector banks.
The Complaint and Where It Stands
The ED's Bengaluru Zonal Office filed the prosecution complaint on July 31, 2026, before the Principal City Civil and Sessions Court in Bengaluru. According to the agency, DCIL's former management allegedly secured enhanced credit facilities and loans from a consortium of banks by deliberately overstating the company's financial health. Investigators claim the company's financial statements and business records were manipulated to make things look far rosier than they actually were — allowing DCIL to get credit well beyond what it should have legitimately qualified for.
How the Case Began
The ED's investigation was triggered by an FIR registered by the CBI. According to a complaint filed by the State Bank of India (SBI), the company and its former officials allegedly caused a loss of roughly ₹899.35 crore, factoring in principal outstanding, accrued interest, and legal expenses. In a separate complaint, Punjab National Bank (PNB) alleged an additional loss of around ₹147.93 crore in public funds. Both complaints were folded into the ED's broader money laundering probe under the PMLA.
Fake Transactions to Inflate the Books
Digging into the company's operations — DCIL manufactured aluminium conductors and operated in the power transmission sector — the ED alleged something quite deliberate: the company allegedly carried out fictitious purchase and sale transactions with related and associated entities purely to inflate its turnover and financial performance on paper. According to investigators, several of these transactions recorded in company books had no actual movement or delivery of goods behind them at all. This is precisely the kind of red flag that thorough auditing services in India are designed to catch — sham transactions that exist only on paper, with no real commercial activity backing them, ultimately used to build a misleading financial profile and unlock bigger credit lines from lenders.
Where the Diverted Money Allegedly Went
According to the ED, funds generated through these alleged fraudulent transactions were then routed through multiple bank accounts before being diverted for purposes that had nothing to do with the actual sanctioned loans. Investigators claim substantial amounts ended up in the personal accounts of promoters and directors, were funnelled to related companies, and were even used to acquire immovable properties. In a particularly telling detail, part of the diverted money was allegedly used to buy back shares held by private equity investors — a move the ED believes was meant to disguise where the money actually came from and where it ultimately went.
Assets Attached, Former MD Already in Custody
As part of the investigation, the ED issued a Provisional Attachment Order on July 30, 2026, attaching assets worth approximately ₹51.28 crore under the PMLA — mostly immovable properties allegedly linked to the accused. That said, this attachment is still provisional and needs to be confirmed by the PMLA Adjudicating Authority in New Delhi, where the matter is currently pending.
This isn't the first major move in the case either — the ED had already arrested DCIL's former Managing Director, K. Venkateswara Rao, back on June 2, 2026, under PMLA provisions, and he remains in judicial custody. The agency says the investigation is still ongoing, with efforts focused on tracing additional financial transactions, identifying other beneficiaries, and examining the role of related entities in the alleged fund laundering. Further legal action could follow if new evidence emerges.
FAQs
Q1. How much financial loss is alleged in the DCIL bank fraud case?
SBI alleged a loss of approximately ₹899.35 crore, while PNB separately alleged an additional loss of around ₹147.93 crore in public funds.
Q2. How did DCIL allegedly inflate its financial performance?
The ED alleges the company carried out fictitious purchase and sale transactions with related entities, with no actual movement or delivery of goods, to artificially boost its turnover and secure larger bank credit.
Q3. Has anyone been arrested in this case so far?
Yes, DCIL's former Managing Director, K. Venkateswara Rao, was arrested on June 2, 2026, under the PMLA and remains in judicial custody.