Rs 326 Crore Bank Loan Scam: ED Searches in Hyderabad

The Enforcement Directorate has launched a fresh crackdown in connection with a major banking fraud in Telangana. Searches were conducted at seven places in Hyderabad, Secunderabad, and Medchal-Malkajgiri under the Prevention of Money Laundering Act, 2002.

The agency is probing Kanakadhara Ventures Private Limited (KVPL) and its directors. The case involves credit facilities totalling Rs 326.49 crore given to the firm by a bank consortium led by Punjab National Bank.

According to the ED, the bank guarantee and letter of credit facilities were not used for their intended purpose. Investigators say forged steel purchase bills and transport documents were used to move money into other channels, routed through connected and middlemen firms.

The ED has also found that KVPL operated bank accounts in a manner that went beyond its agreement with the lenders, and that the consortium was not aware of these accounts.

The investigation is ongoing, and the agency is working to establish the full extent of the alleged diversion of funds.