ED searches Kanakadhara Ventures in Rs 326.49 crore PNB-led consortium loan case
The ED said it searched 7 premises in Telangana linked to Kanakadhara Ventures in a case alleging a Rs 326.49 crore loss to a PNB-led bank consortium, and seized Rs 15 lakh in cash.
Key points
- The ED said it searched 7 premises in Hyderabad, Secunderabad and Medchal-Malkajgiri on 23 October 2026 in the Kanakadhara Ventures case.
- According to the ED, the case involves an alleged loss of Rs 326.49 crore to five banks led by Punjab National Bank; Rs 15 lakh in cash was seized.
- These are ED allegations based on a CBI FIR; the accused are presumed innocent and the case will be decided in court.
The Enforcement Directorate (ED) said it searched 7 premises in Hyderabad, Secunderabad and Medchal-Malkajgiri on 23 October 2026 in a money-laundering case against M/s Kanakadhara Ventures Pvt. Ltd. (KVPL) and its directors. The case concerns an alleged loss of Rs 326.49 crore to a consortium of banks led by Punjab National Bank, and the ED said it seized Rs 15 lakh in unaccounted cash.
What Happened
The ED's Hyderabad Zonal Office said the premises searched included KVPL's registered office, the homes of its directors, and the premises of entities and persons that, according to the ED, acted as conduits for diverting bank funds.
The ED's investigation is based on an FIR registered on 8 December 2022 by the CBI's Bank Securities & Fraud Branch, Bangalore, on a complaint by Punjab National Bank. The FIR alleges cheating, forgery and criminal conspiracy under the Indian Penal Code, and offences under the Prevention of Corruption Act, by KVPL, its directors and others.
According to the ED, the lending consortium was led by Punjab National Bank and included IDBI Bank, Union Bank of India, Andhra Bank (now part of Union Bank of India) and Bank of Baroda. The ED alleges that bank guarantee and letter of credit facilities sanctioned to KVPL were misused and that funds were diverted through related and conduit entities, partly on the basis of fabricated steel purchase invoices and transport documents. The agency also says KVPL ran bank accounts outside the consortium arrangement without the lending banks' knowledge.
The ED said it seized documents, digital devices and other records, along with the cash, and has identified several properties and investments.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
What It Means
The case concerns credit facilities given to a company by a group of public and private sector banks. A bank guarantee is a bank's promise to pay a third party if its customer fails to, and a letter of credit is a bank's assurance of payment to a supplier. The release does not say that any depositor's money is at risk.
Searches and seizures are investigative steps. Whether any money was laundered will be decided by the court after trial.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
Named in this report, or spotted an error? Corrections and responses: editor@oquilia.com. We correct errors promptly and record responses from named parties.
Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate