ED Hyderabad Attaches ₹111.57 Crore Properties Linked to Victory Electricals Money Laundering Case.

Headnote:

The Directorate of Enforcement (ED), Hyderabad, has provisionally attached immovable properties worth ₹111.57 crore belonging to M/s Hackbridge Hewittic and Easun Ltd. under the Prevention of Money Laundering Act, 2002. The attachment is linked to the case against M/s Victory Electricals Ltd. (VEL) and M/s Victory Transformers and Switchgears Ltd. (VTSL), whose directors are accused of defrauding the State Bank of India (SBI) by fabricating documents, inflating balance sheets, and diverting loan funds through shell companies, causing a total loss of ₹189.04 crore to the bank.

Background:

• The ED initiated the probe based on an FIR registered by the Central Bureau of Investigation (CBI) against M/s Victory Electricals Ltd. (VEL), M/s Victory Transformers and Switchgears Ltd. (VTSL), and their directors — Mahindra Kumar Vaddineni, Manoj Kumar Vaddineni, and Venkatappa Naidu Vaddineni — following a complaint from SBI’s Stressed Asset Management Branch, Hyderabad.

• The CBI’s chargesheet (CC No. 8743/2023) before the XXI ACMM, Hyderabad, alleged that the accused conspired to submit forged financial records and inflated receivables to secure credit and letter of credit facilities from SBI, later siphoning off ₹136.50 crore through shell entities.

• The ED investigation uncovered that the main accused, Mahindra Kumar Vaddineni, diverted ₹88.93 crore through shell companies controlled by co-accused Naveen Khatri in Delhi to layer transactions and disguise the illicit origin of funds. The laundered funds were routed back to VEL and VTSL accounts, falsely portrayed as legitimate business proceeds.

• The funds were misused through various means: ₹17.17 crore to settle unrelated liabilities, ₹46.31 crore through non-genuine inter-company transfers, and ₹15.65 crore in cash withdrawals from loan accounts.

Findings and Attachment:

• In 2011, SBI issued a foreign bank guarantee worth USD 5 million (₹45.10 crore) for transformer supplies by VEL, which was later invoked due to non-performance. This amount added to the total loss of ₹189.04 crore, of which only ₹77.47 crore was recovered.

• As no unencumbered properties of VEL, VTSL, or their directors were available, the ED identified that VEL held a 93.28% controlling stake in M/s Hackbridge Hewittic and Easun Ltd., where the same directors held key positions.

• Accordingly, land parcels worth ₹111.57 crore owned by M/s Hackbridge Hewittic and Easun Ltd. were provisionally attached under the PMLA.

Status

Further investigation into the layering of proceeds of crime and associated entities is currently in progress.

Legal Provision Discussed

• Prevention of Money Laundering Act, 2002 – Sections relating to attachment of proceeds of crime and investigation into money-laundering offences.

Date: 13 November 2025

Agency: Directorate of Enforcement (ED), Hyderabad Zonal Office

Law Invoked: Prevention of Money Laundering Act, 2002 (PMLA)