ED searches seven premises in Hyderabad over alleged ₹326-crore bank fraud
The investigation concerns the alleged defrauding of a consortium of banks led by Punjab National Bank, along with IDBI Bank, Union Bank of India, Andhra Bank (now part of Union Bank of India), and Bank of Baroda, resulting in a loss of ₹326.49 crore
The ED investigation was initiated based on a case registered by the Central Bureau of Investigation, BS&FB, Bengaluru, on a complaint by Punjab National Bank. File.
The Enforcement Directorate (ED) conducted searches at seven premises across Hyderabad, Secunderabad and Medchal-Malkajgiri on Friday (October 23, 2026) as part of a money laundering investigation into the alleged diversion of bank funds by Kanakadhara Ventures Pvt Ltd (KVPL) and its directors.
The searches, conducted under the Prevention of Money Laundering Act (PMLA), covered the registered office of KVPL, residences of its directors and premises of entities and individuals suspected of acting as conduits for diversion of bank funds.
According to the ED, the investigation concerns the alleged defrauding of a consortium of banks led by Punjab National Bank, along with IDBI Bank, Union Bank of India, Andhra Bank, now part of Union Bank of India, and Bank of Baroda, resulting in a loss of ₹326.49 crore.
The agency said its investigation revealed that bank guarantee and letter of credit facilities sanctioned to KVPL were allegedly misused and funds diverted through related and conduit entities. The alleged diversion involved fabricated steel purchase invoices and transport documents, the ED said.
KVPL was also found to have operated bank accounts outside the consortium arrangement without the knowledge of the lending banks, according to the agency.
During the searches, ED officials seized incriminating documents, digital devices and other records relating to the alleged diversion and layering of funds. Unaccounted cash amounting to ₹15 lakh was also seized.
The agency said multiple immovable properties and investments had also been identified during the investigation.
The ED investigation was initiated based on a case registered by the Central Bureau of Investigation, BS&FB, Bengaluru, on a complaint by Punjab National Bank. The case concerns allegations against KVPL, its directors and others.
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