The Directorate of Enforcement (ED), Hyderabad Zonal Office, conducted search operations at seven premises across Hyderabad, Secunderabad and Medchal-Malkajgiri in Telangana under the Prevention of Money Laundering Act (PMLA), according to an official statement. The raids were carried out on 23 October 2026 and targeted the registered office of M/s Kanakadhara Ventures Pvt. Ltd. (KVPL), the residences of its directors, and premises linked to entities and individuals alleged to have acted as conduits for the diversion of bank funds. The searches were conducted under the Prevention of Money Laundering Act (PMLA), 2002, as stated in a press release dated 24 October 2026.
The ED case stems from an FIR dated December 8, 2022, registered by the Central Bureau of Investigation, Bank Securities and Fraud Branch (BS&FB), Bangalore, on a complaint from Punjab National Bank. According to the agency, a consortium of banks led by Punjab National Bank -- comprising IDBI Bank, Union Bank of India, Andhra Bank (now UBI) and Bank of Baroda -- suffered a loss of ₹326.49 crore. The searches form part of an ongoing investigation into the alleged 'misutilisation' and diversion of credit facilities sanctioned to KVPL and its directors. The case is based on FIR No. RC0782022E0005 dated 08.12.2022, registered by the Central Bureau of Investigation (CBI), BS&FB, Bangalore, on a complaint from Punjab National Bank.
ED investigations revealed that Bank Guarantee and Letter of Credit facilities granted to KVPL were misused. Funds were allegedly diverted through related and conduit entities on the strength of fabricated steel purchase invoices and transport documents. The company is also accused of operating bank accounts outside the consortium arrangement without the knowledge of the lending banks, as reported by the ED statement. The case concerns the alleged defrauding of the consortium of banks led by Punjab National Bank.
During the searches, officials seized incriminating documents, digital devices and other records related to the diversion and layering of funds. Unaccounted cash amounting to ₹15 lakh was also recovered. Multiple immovable properties and investments linked to the case have been identified, according to the ED statement. The FIR alleges offences under Sections 120-B, 420, 468 and 471 of the Indian Penal Code, 1860, and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988.
ED stated its findings from the investigation and confirmed that further investigation is under progress following the coordinated action. The coordinated action underscores the agency's continued focus on tracing the proceeds of bank frauds and cracking down on complex money-laundering networks involving corporate entities, as reported by the ED statement.
