HYDERABAD: The Directorate of Enforcement’s Hyderabad Zonal Office on Friday conducted searches at seven premises linked to M/s Kanakadhara Ventures Pvt Ltd (KVPL), including its registered office, the residences of its directors, and properties belonging to entities and individuals allegedly acting as conduits for the diversion of bank funds.
The searches were conducted as part of an ongoing investigation into the alleged diversion of credit facilities by the company and its directors. The ED initiated its investigation based on an FIR (No RC0782022E0005) registered by the Central Bureau of Investigation (CBI) on 8 December 2022, following a complaint by Punjab National Bank (PNB). The FIR alleges offences under Sections 120-B, 420, 468 and 471 of the Indian Penal Code, 1860, and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988, against KVPL, its directors and others.
The case relates to the alleged defrauding of a consortium of banks led by PNB, resulting in an alleged loss of Rs 326.49 crore. The ED’s investigation has revealed the alleged misuse of bank guarantee and letter of credit facilities sanctioned to KVPL and the diversion of funds through related entities and conduits, purportedly supported by fabricated invoices.