ED raids seven sites in Hyderabad over alleged ₹326.49 crore bank fraud by Kanakadhara Ventures

The Enforcement Directorate searched seven premises in Hyderabad, Secunderabad and Medchal‑Malkajgiri on Friday, October 23, 2026, probing a suspected ₹326.49 crore diversion of funds by Kanakadhara Ventures Pvt Ltd (KVPL) and its directors. The raids, carried out under the Prevention of Money Laundering Act, covered KVPL’s registered office, the homes of its directors and properties linked to alleged conduit entities. The case stems from a complaint by Punjab National Bank that led the Central Bureau of Investigation’s Bengaluru branch to file a case, which the ED later took over. According to the agency, a consortium of banks led by Punjab National Bank, together with IDBI Bank, Union Bank of India, the former Andhra Bank (now merged with Union Bank) and Bank of Baroda, suffered the loss after bank guarantees and letters of credit were misused. The ED says KVPL fabricated steel‑purchase invoices and transport documents to channel the money through related and conduit firms, and also opened bank accounts outside the consortium arrangement without the lenders’ knowledge. During the searches officials seized incriminating documents, digital devices, records of fund layering, and unaccounted cash of ₹15 lakh. Multiple immovable properties and other investments linked to the scheme were also identified.

Context

The Prevention of Money Laundering Act empowers the ED to investigate and seize assets when there are indications of illicit fund movement, especially in cases where bank guarantees are used fraudulently. Such actions aim to protect the banking system from large‑scale financial scams.