3 weeks ago
ED files Rs 1,047-crore bank fraud chargesheet against Deepak Cable
Some banks in India gave a cable-making company a lot of money, more than it was supposed to get.
The Enforcement Directorate, a special police agency, thinks the company tricked the banks with fake financial papers.
It also thinks the company pretended to buy and sell goods with other companies when nothing really moved.
If that is true, the money from the banks was hidden and spent in secret ways.
The police have now formally accused the company and several of its leaders and partner companies.
One former boss has been arrested and is waiting in jail.
Expensive properties linked to the case have been taken under government control.
The company and its leaders say they did nothing wrong.
A judge will now look at all the facts and decide what really happened, while investigators keep working on the case.
The Enforcement Directorate has filed a chargesheet before a Bengaluru court against Deepak Cable (India) Limited, its former promoters and directors, and associated companies.
The chargesheet, filed on July 31, names 11 accused in an alleged bank fraud and money laundering case involving more than Rs 1,047 crore.
The case stems from CBI FIRs based on complaints by State Bank of India (alleging a wrongful loss of Rs 899.35 crore) and Punjab National Bank (alleging fraud of Rs 147.93 crore).
The ED alleged the company secured enhanced credit from a consortium of banks using inflated financial records and carried out fictitious sale and purchase transactions without actual movement of goods.
Former Managing Director K. Venkateshwara Rao was arrested on June 2, 2026, and is in judicial custody; properties worth around Rs 51.28 crore have been provisionally attached.
The ED said further investigation into the case is underway.
- Who
- The Enforcement Directorate's Bengaluru Zonal Office; the accused include Deepak Cable (India) Limited, its former MD K. Venkateshwara Rao, former Director Satyavathy Balla, and related companies such as Surya Transmission Limited and Amrutha Constructions Private Limited.
- What
- A chargesheet was filed alleging bank fraud and money laundering involving more than Rs 1,047 crore.
- Where
- Before the Bengaluru Principal City Civil and Sessions Judge, Bengaluru, India.
- When
- The chargesheet was filed on July 31, 2026; the former MD was arrested on June 2, 2026.
- Why
- The accused allegedly secured enhanced credit facilities from a consortium of banks by submitting inflated financial records and laundering the proceeds through fictitious transactions, personal accounts, property purchases, and share buybacks.
Investigation's case
Defense position
Nature of the transactions
Investigation's case
The ED alleges the company secured enhanced credit with inflated financial records and carried out fictitious sale and purchase transactions with related and unrelated firms without any actual movement of goods.
Defense position
The accused are presumed innocent until proven guilty and deny wrongdoing; they would contend the transactions were genuine business dealings by an operational manufacturing company.
Use of the funds
Investigation's case
The ED alleges proceeds of crime were diverted to promoters' and directors' personal accounts, transferred to related companies, used to buy immovable properties, and used to buy back equity shares held by private equity investors.
Defense position
The accused would argue the money was legitimate business revenue used for lawful company operations and investments, not criminal proceeds.
Quantum of the alleged fraud
Investigation's case
The investigation puts the losses to the banks at over Rs 1,047 crore, based on complaints from SBI (Rs 899.35 crore) and PNB (Rs 147.93 crore).
Defense position
The defense is expected to contest the computation of the alleged losses, including the inclusion of notional interest and legal expenses.
Key facts
- Case amount
- More than Rs 1,047 crore
- Accused named
- 11 accused, including Deepak Cable (India) Limited
- Chargesheet filed
- July 31, 2026
- Complainant banks
- State Bank of India and Punjab National Bank (complaints lodged with the CBI)
- Alleged loss to SBI
- Rs 899.35 crore, including notional interest and legal expenses
- Alleged fraud with PNB
- Rs 147.93 crore
- Arrest
- Former MD K. Venkateshwara Rao arrested June 2, 2026; in judicial custody
- Attached properties
- Immovable properties worth around Rs 51.28 crore provisionally attached
Sources
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