Fake invoices, diverted funds: ED searches 7 premises in ₹326 cr bank fraud probe | Hyderabad News

Hyderabad: Enforcement Directorate (ED) on Friday conducted searches at seven locations across Hyderabad, Secunderabad and Medchal-Malkajgiri district as part of its money laundering probe into an alleged ₹326-crore bank fraud involving Kanakadhara Ventures Pvt Ltd (KVPL), its directors and a network of entities suspected of siphoning off bank funds through fake transactions.During Friday’s searches, the ED seized documents, digital devices and records suspected to be linked to the diversion and layering of funds. Investigators also identified multiple immovable properties and investments that are now under scrutiny as part of the ongoing probe.

The searches, carried out under the Prevention of Money Laundering Act (PMLA), covered the company’s registered office, residences of its directors, and premises linked to individuals and entities allegedly used as conduits for diverting funds obtained from a consortium of banks.The ED investigation pertains to the alleged misuse of credit facilities extended to KVPL by a consortium of five banks led by Punjab National Bank (PNB). The other lenders were IDBI Bank, Union Bank of India, Andhra Bank (now merged with Union Bank) and Bank of Baroda.According to the ED, bank guarantees and letters of credit sanctioned to the company were allegedly misused to divert funds through related entities and conduits. Investigators found that fabricated steel purchase invoices and transport documents were used to route the transactions.The agency also found that the company had operated bank accounts outside the consortium arrangement without informing the lending banks, in alleged violation of the loan conditions.Properties under scrutinyThe money laundering investigation stems from an FIR registered by the CBI’s banking securities and fraud branch, Bengaluru, on Dec 8, 2022, based on a complaint lodged by PNB.The CBI booked KVPL, its directors and others for alleged criminal conspiracy, cheating, forgery and use of forged documents under the IPC, apart from provisions of the Prevention of Corruption Act.Further investigation is underway to trace the alleged fund trail and establish the role of the entities and individuals involved.