Bengaluru, Sep 1 (IANS) The Enforcement Directorate (ED) has provisionally attached movable assets worth approximately Rs 3.31 crore in the form of 62,914.316 units of HDFC Balanced Advantage Fund in connection with a money laundering case involving Akshatha Minerals Pvt Ltd and others, the agency said on Tuesday.
The ED’s Bengaluru Zonal Office issued the Provisional Attachment Order on September 1, 2026, under Section 5(1) of the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated based on an FIR registered by the Central Bureau of Investigation’s Anti-Corruption Bureau (CBI-ACB), Bengaluru, against Akshatha Minerals Pvt Ltd, its directors and others for alleged cheating, criminal conspiracy and use of forged documents.
According to the ED, Akshatha Minerals, which was involved in the trading and export of iron ore, had availed credit facilities of around Rs 6 crore from the Bank of India by creating an equitable mortgage over six properties.
One of the properties, located in Jayamahal, Bengaluru, was allegedly falsely represented as being owned by the late Lakshmamma. The ED said forged and fabricated Khata records, tax-paid receipts, betterment charge receipts and other revenue documents were allegedly submitted to the bank to create the mortgage.
The Bank of India subsequently disbursed Rs 3 crore against the property, the agency said.
The investigation further revealed that Rs 1 crore, identified as part of the alleged proceeds of crime, was transferred from the bank account of Akshatha Minerals to the Catholic Diocese of Bellary Trust on February 13, 2010.
The amount was subsequently invested and reinvested through various HDFC Mutual Fund schemes. The ED said the money trail established that the original allegedly tainted amount remained identifiable through successive investments and was ultimately represented by 62,914.316 units of the HDFC Balanced Advantage Fund.
According to the agency, the value of the units increased from the original Rs 1 crore to approximately Rs 3.31 crore. The appreciation was described by the ED as the fruits or accretions of the alleged proceeds of crime.
The ED had earlier filed a prosecution complaint before the Special Court in Bengaluru on March 28, 2026.
Further investigation in the case is underway.
–IANS
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