ED arrests CEO of Deepak cables in ₹899 crore bank fraud case

The Enforcement Directorate (ED), Bengaluru Zonal Office, has arrested Karuturi Venkateshwar Rao, CEO of Deepak Cables (India) Limited, in connection with an alleged ₹899.35 crore bank fraud involving a consortium of banks led by State Bank of India (SBI).

After his arrest on June 2 under the Prevention of Money Laundering Act (PMLA), 2002, a special court in Bengaluru sent him to ED custody for 10 days.

The ED alleged that Mr. Rao generated the proceeds of crime and subsequently layered and integrated these funds through several bank accounts linked to entities he operated and controlled.

The money laundering probe stems from a CBI case registered against Deepak Cables India Ltd., Rao and others for allegedly defrauding a consortium of banks to the tune of ₹899.35 crore. According to the agency, the company obtained substantial loans from banks and diverted funds, submitting falsified financial statements and manipulating its books to secure and continue to use the loans.

The ED claimed that investigations revealed that the accused allegedly used a network of entities to create fictitious sales and purchases, engaged in circular trading and issued false corporate guarantees. These transactions were allegedly used to inflate turnover, increase drawing power from banks, evergreen existing loans and divert funds through related companies and personal accounts to conceal their origin.

Investigators also found that large sums of loan funds were transferred to entities allegedly controlled by Rao without any legitimate business rationale. The diverted funds were allegedly routed through various channels in an attempt to disguise their illicit nature.

Earlier searches conducted in the case led to the seizure of gold jewelery and cash worth ₹1.27 crore, while bank accounts with balances of about ₹18 crore were frozen.

Published – 04 Jun 2026 19:57 IST